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New Delhi [India], May 18 (ANI): India is poised to grow at 6.2 per cent in the current financial year 2023-24 with improving macro stability indicating that the monetary policy will not have to turn restrictive, <keyword id="48670" type="General" weightage="80" keywordseo="morgan-stanley" source="Orion">Morgan Stanley</keyword> has said. In a report titled "Asia Economics: The Viewpoint: Addressing the Pushback to Our Constructive View", authored by Chetan Ahya, Derrick Y Kam, Qiusha Peng, and Jonathan Cheung, Morgan Stanley said India enjoys tailwinds -- both cyclical and structurally. "We see healthy balance sheets sustaining the robust trends in domestic demand. Improving macro stability means the monetary policy will not have to turn restrictive, allowing the economic expansion to continue," the report said. In the three-day deliberations of the <keyword id="6375120" type="General" weightage="50" keywordseo="monetary-policy-committee" source="Orion">Monetary Policy Committee</keyword> of the <keyword id="6354335" type="General" weightage="50" keywordseo="reserve-bank-of-india" source="Orion">Reserve Bank of India</keyword> in early April, Governor <keyword id="6359111" type="General" weightage="50" keywordseo="shaktikanta-das" source="Orion">Shaktikanta Das</keyword> said the central bank has projected India's real GDP growth for 2023-24 at 6.5 per cent. Late last year, investors had raised concerns over India's growth momentum as growth indicators had slowed post the festive season in October. However, growth indicators reaccelerated in early 2023. For instance, the services Purchasing Managers' Index is at a 13-year high and the manufacturing PMI is near an 11-year high, both well above that of other economies; passenger vehicle sales are at 131 per cent of pre-covid levels, real goods and services tax collections are 35 per cent higher than pre-covid. Against those thriving fundamentals, Morgan Stanley's chief India economist Upasana Chachra expects GDP growth of 6.2 per cent for 2023-24, higher than the wide expectation of 5.8 per cent. Further, clearing doubts about India's rural spending, the Morgan Stanley report said it is of the view rural spending will strengthen. "As we noted previously, it is the case that rural and lower-income consumers are taking longer to revive spending as they have not received stimulus, and they had suffered a loss of purchasing power as inflation rose. But, as these effects fade, spending by rural and lower-income consumers is recovering. Indeed, real agricultural credit growth - a proxy for rural activity - has rebounded to the highest level since 2016, boding well for rural employment and consumption," the report read. (ANI)

India poised to grow at 6.2% in 2023-24 says Morgan Stanley

<ul><li>Focus on job creation and investment-driven growth should be a primary agenda in this <keyword id="6358021" type="General" weightage="50" keywordseo="budget" source="Orion">budget</keyword>. Infrastructure projects hold the key to the development of any country. </li><li>Tightening of the <keyword id="6357126" type="General" weightage="20" keywordseo="monetary-policy" source="Orion">monetary policy</keyword> and consecutive rate hikes by the RBI as inflation crept impacted the purchasing power capacity of a large section of the populace, especially in the rural sector. </li><li>In this economic climate, where credit availability is facing global headwinds, the government can offer support via credit stimulus to small and medium enterprises.</li></ul>The Union Budget is one of the most anticipated events, closely watched by market participants. By offering a blueprint for the economic roadmap of the union government, the budget often serves as a catalyst that stimulates overall economic and market growth. As the world battles economic headwinds and recessionary trends, all eyes are on the FM and what she will present on February 1. Being the last full-year budget before the Union Elections in 2024, we expect the government to deliver a growth-oriented budget, offering a roadmap to generate gainful employment opportunities without burning a hole in fiscal health. From a market perspective, any announcement or policy draft to bring the oil and gas sector under GST would be positive. The market will also react favorably to any plan to reduce pending receivables of infrastructure companies from government undertakings via a quick dispute resolution process. Moreover, new measures to prod state governments to improve the financial health of electricity companies will also be received well by the market. The markets, however, would be wary of a full-fledged populist budget or a significant increase in subsidies that impact the fiscal consolidation roadmap. These measures can result in a market correction. A substantial rise in borrowings that can increase long-term bond yields could make markets jittery. We believe that in this budget, the government will remain committed to maintaining macroeconomic stability by adopting a fiscal consolidation path. The government is dealing with slowing global growth and macroeconomic uncertainties threatening domestic growth. Against this backdrop, achieving the right balance between growth and inflation, with a focus on capacity building, is crucial. <cmsannotation type="cmsannotation" annotationid="A push to job creation and infra growth" comment="subhead2" text="A push to job creation and infra growth">A push to job creation and infra growth</cmsannotation> Focus on job creation and investment-driven growth should be a primary agenda in this budget. Infrastructure projects hold the key to the development of any country. An emphasis on infrastructure spending and increasing budgetary allocation to infra projects in the upcoming fiscal will be helpful in the push for growth. Steps towards infrastructure development will augment our job creation capabilities as well. Additional focus on building and improving public infrastructure such as water, metro, railways, defence, digital infrastructure, and green initiatives is the need of the hour. It will showcase our true potential as an investment destination, ensure easy and fast movement of goods and services, and help in employment generation. We hope that the upcoming budget takes steps to provide a fresh impetus to private capital expenditure that has been sluggish in the past few years. It will boost investment activities leading to more production and employment. The PLI scheme that offers production-linked incentives to multiple sectors and industries to manufacture domestically has been a huge success. We hope the government takes steps to include more industries and sectors under the PLI ambit. This move will boost manufacturing in India and help drive growth and employment opportunities. <cmsannotation type="cmsannotation" annotationid="Higher rural spending to beat inflation pressures" comment="subhead2" text="Higher rural spending to beat inflation pressures">Higher rural spending to beat inflation pressures</cmsannotation> Inflation has been relatively high in the last fiscal, driven by global cues. A tightening of the monetary policy and consecutive rate hikes by the RBI as inflation crept has impacted the purchasing power capacity of a large section of the populace, especially in the rural sector. We hope the government offers relief measures for those at the bottom of the pyramid. As the rural economy recovers slowly from the pandemic, more policy measures aimed at offering affordable housing options and expanding the scope of employment guarantee schemes will be helpful. Employment and housing are two core areas where government policy in the budget could bring about lasting change. The Economic advisory council to the Prime Minister has spoken about universal basic income and higher fund allocation for the social sector to reduce inequality. More steps in this direction will help augment rural growth and put the country on the path to prosperity and growth. The government can also offer relief by expanding the current income tax benefits for housing to support growth and affordability in rural areas. <cmsannotation type="cmsannotation" annotationid="Small and Medium enterprises" comment="subhead2" text="Small and Medium enterprises">Small and Medium enterprises</cmsannotation> The Indian economy has come out of the pandemic-induced slump and is a shining light, even as global economic growth stalls. In this economic climate, where credit availability is facing global headwinds, the government can offer support via credit stimulus to small and medium enterprises. The banking system is on the cusp of a good recovery with robust balance sheets, improving asset quality trends, and lower provisioning. A stimulus will help credit growth pick up steam. We hope the budget sets a roadmap to build and bolster the entrepreneurship culture in India with new policies and a push for fresh investments in agriculture and allied activities that can be a focus area. The budget should also focus on developing rural industries and improving the reach of healthcare facilities in rural areas. In a nutshell, the budget must focus on driving and sustaining growth via capacity creation. The government must take steps to build on its capital expenditure by fostering private capital expenditure. Making the atmosphere more conducive for capital market investments will help fulfil the dream of making the 20s truly The Indian Decade. (B Gopkumar is MD &amp; CEO, Axis Securities)

Conducive capital markets will help fulfil the dream of making this India’s Decade

<ul><li>The <keyword id="6354335" type="COMPANY" weightage="20" keywordseo="reserve-bank-of-india">Reserve Bank of India</keyword> (<keyword id="30067" type="ORGANIZATION" weightage="20" keywordseo="RBI">RBI</keyword>) has announced a ₹50,000 crore lending programme, as part of a larger stimulus plan</li><li>Banks have been allowed to lend money to <keyword id="8764262" type="COMPANY" weightage="20" keywordseo="covid">Covid</keyword> patients who need money for treatment, aside from hospitals, dispensaries, manufacturers, importers and sellers of oxygen and concentrators.</li><li>The window for such loans will shut on March 31, 2022, as of now, said the RBI Governor Shaktikanta Das.</li></ul>The Reserve Bank of India (RBI) has announced a ₹50,000 crore lending programme, as part of a larger stimulus plan, to ease the devastating impact of the second wave of the COVID-19 pandemic. As part of this ₹50,000 crore liquidity facility, banks have been allowed to lend money to Covid patients who need money for treatment, aside from hospitals, dispensaries, manufacturers, importers and sellers of medical oxygen and oxygen concentrators. The tenure of these loans will be a maximum of 3 years and the interest rate will be the same as the repo rate (the rate at which banks borrow money from the RBI). The window for such loans will shut on March 31, 2022, as of now, said the RBI Governor Shaktikanta Das. “The immediate objective is to save human lives and livelihoods,” he said in his unscheduled address to the media on May 5. "The announcements from RBI will also provide much needed liquidity to the emergency healthcare sector to battle the proliferating spread of the virus. A new term liquidity facility for healthcare sector at the repo rate will aid in ramping up covid related healthcare infrastructure and production and supply of essential healthcare products such as vaccines, oxygen and ventilators. It will also benefit patients burdened by unaffordable covid related medical bills," said Aashit Shah, Partner, J Sagar Associates. Some of the other announcements made by the RBI Governor are as follows: Banks have been allowed to create a separate COVID-19 loan book that will meet the needs of emergency funding. The money that banks borrow from the central bank for this purpose will be given at a rate 25 basis points (bps) less than the current repo rate of 4%. 100 basis points make a percentage. The surplus funds (money not lent at any point) in that loan book can be parked with the RBI at a rate that’s 40 bps more than the reverse repo rate i.e., 3.35% (the usual rate that banks get for parking money with the RBI). "This will ensure that banks accelerate the provision of liquidity for emergency healthcare services so that India is better equipped financially to deal with the pandemic," Shah explained. Micro, medium and small enterprises (MSME), who have borrowed ₹25 crore or more from banks, can get the repayment schedule restructured, if they want to, before September 31, 2021. "The additional restructuring guidelines for to MSMEs, small businesses and individuals will assist them tide over the uncertainties caused due to the second wave. These guidelines as well as the recently introduced pre-arranged insolvency resolution process will enable MSMEs to restructure their debts without the looming fear of losing or liquidating their businesses," said Shah. Small finance banks can get additional long-term funds from the RBI (up to a total of ₹10,000 crore) to make fresh loans to borrowers up to ₹10 lakh per borrower. SEE ALSO: <a href="https://www.businessinsider.in/business/auto/news/triton-ev-founder-says-its-planning-for-an-ipo-soon-in-the-us/articleshow/82398780.cms">EXCLUSIVE: Triton EV founder says it is planning for an IPO soon in the US as the company gears up for its first car launch in India</a> <a href="https://www.businessinsider.in/tech/news/indian-government-gives-the-nod-for-5g-trials-chinese-companies-kept-out-for-now/articleshow/82398249.cms">Indian government gives the nod for 5G trials, Chinese companies kept out for now</a>

COVID patients can get bank loans for treatment after Indian central bank’s fresh set stimulus measures

<ul><li>Former <keyword id="64190" type="POSITION" weightage="20" keywordseo="RBI-Governor">RBI governor</keyword> <keyword id="6358908" type="DEFINITION" weightage="20" keywordseo="raghuram-rajan">Raghuram Rajan</keyword> believes that the government’s top priority should be allocating financial resources towards medical supplies required to fight the <keyword id="8829783" type="UNKNOWN" weightage="20" keywordseo="coronavirus-pandemic">Coronavirus pandemic</keyword>.</li><li>He told India Today in an interview that the second priority should be providing assistance to <keyword id="6903191" type="UNKNOWN" weightage="20" keywordseo="poor-households">poor households</keyword>.</li><li>Only when those two things are taken care of should the government think about introducing a monetary or fiscal stimulus to help the economy, Rajan said.</li></ul>Former RBI governor Raghuram Rajan believes that the government’s top priority should be procuring medical supplies to fight the <keyword id="1754604" type="PERSON" weightage="20" keywordseo="coronavirus">Coronavirus</keyword> pandemic. He said that no expense should be spared in its battle to control the spread of Covid-19. “We need to spend money on medical supplies, ventilators, and masks — on getting protective equipment for medical workers. This means getting resources from private, public, defence, retirement — every resource — and quickly,” Rajan said speaking to India Today. . Rajan explained that even though temporary income support would make sense, the government’s resources are already very limited. “This is not the time to discuss that,” he said about a possible economic and monetary stimulus that the economy might need. However, the finance minister Nirmala Sitharaman on March 24 said that an economic stimulus package would be announced “sooner than later”. She also announced a list of compliances that have been relaxed including delaying IT return filing et cetera. As per Rajan’s list of priorities, the second step should be to address the marginalised sections of the community. Making sure that the livelihoods of poor households — both rural and urban — have enough to sustain themselves. Only when these two critical issues have been addressed, should the government allocate finances towards fixing the economy, according to Rajan. How should the government handle the Coronavirus’ impact on the <keyword id="6356076" type="DEFINITION" weightage="20" keywordseo="indian-economy">Indian economy</keyword>? According to Rajan, everyone is looking at China right now to see if their preventive measures against the spread of Coronavirus will hold. It has already reported a dip of 10% in its GDP during the first quarter. The estimates for Europe and the US also indicate a double-digit fall during the second quarter. When it comes to India, it’s important to make sure that the temporary pandemic shock on the economy doesn’t become a permanent feature, according to Rajan. The downturn of the economy leads to a slowdown in cash flow and takes away the income of workers. He points out that if this carries on for long enough, it could lead to substantial layoffs and firms closing down. “When the Coronavirus is under control, there won’t be a lot of economic activity because those businesses won’t start up again,” said Rajan. He said that even though the government can’t necessarily offer financial support — it can offer partial guarantees and incentivise banks to continue extending credit. See also: <a href="https://www.businessinsider.in/finance/news/no-minimum-balance-use-any-atm-all-the-changes-for-bank-customers-in-india-amidst-coronavirus-related-lockdown/articleshow/74791418.cms">No minimum balance, use any ATM⁠— all the changes for bank customers in India amidst Coronavirus-related lockdown</a> <a href="https://www.businessinsider.in/policy/economy/finance-minister-nirmala-sitharaman-speech-highlights-and-updates/articleshow/74789836.cms">The big announcements from India's Finance Minister Nirmala Sitharaman</a> <a href="https://www.businessinsider.in/india/news/coranavirus-cases-in-delhi-news-and-updates/articleshow/74773842.cms">The third stage of coronavirus spread in India can be delayed but not stopped, says ICMR</a>

Raghuram Rajan says save people before saving the economy

<ul><li>The IMF in its World Economic Outlook had forecast India's growth rate to be 1.9% in 2020. </li><li>IMF director Chang Yong Rhee said, "Asia's growth still fares better than other regions." </li></ul>The <keyword id="6366068" type="COMPANY" weightage="20" keywordseo="international-monetary-fund">International Monetary Fund</keyword> Wednesday said that it supports India's proactive decision of a imposing a nationwide lockdown in its fight against <keyword id="1754604" type="PERSON" weightage="20" keywordseo="coronavirus">coronavirus</keyword>. A day earlier, the IMF in its World Economic Outlook had forecast India's growth rate to be 1.9 per cent in 2020. "India entered the pandemic turmoil in the midst of a credit crunch-induced slowdown and its recovery prospect becomes more uncertain," Chang Yong Rhee, the Director of the IMF's Asia and <keyword id="313465" type="COMPANY" weightage="20" keywordseo="Pacific-Department">Pacific Department</keyword>, told reporters during a news conference here. "Despite the economic slowdown, the government implemented a nationwide lockdown and we support India's proactive decision," Rhee said. On March 25, India entered a three-week lockdown, which was slated to end on April 14. The lockdown was extended till May 3. The impact of the coronavirus on the Asia-Pacific region will be severe, across the board, and unprecedented, he said, adding that Asia's growth in 2020 will come to a standstill. This is worse than the annual average growth rates throughout the Global Financial Crisis (4.7 percent) or the Asian Financial Crisis (1.3 percent). Actually, Asia has not experienced zero growth in the last 60 years, he said. "That said, Asia's growth still fares better than other regions." For 2021, he said, there is hope. If containment policies succeed there could be a rebound in growth, he said. However, it is highly uncertain how this year will progress, he added. Noting that this is not a time for business as usual, Rhee said that Asian countries need to use all policy instruments in their toolkits. In doing so, policy tradeoffs will be inevitable and will depend on policy space, he added. China is expected to grow by 1.2 percent in 2020. The revisions to growth reflect both losses of domestic activity due to the social distancing measures, as well as loss of external demand. "We expect a rebound in economic activity later this year. This is because China is emerging from the outbreak first. Nonetheless, there are clear risks: the virus could come back and normalization could take longer," Rhee said. <keyword id="6355311" type="LOCATION" weightage="20" keywordseo="japan">Japan</keyword>'s economic outlook for 2020 has deteriorated significantly, he said. Real GDP in Japan is expected to decline by 5.2 percent, caused by the coronavirus impact, and a sharp deterioration of external demand, he said, adding <keyword id="5565" type="LOCATION" weightage="20" keywordseo="South-Korea">South Korea</keyword>'s growth in 2020 is anticipate to be at -1.2 percent, he said. Spelling out a set of recommendations for the countries in the Asia-Pacific region, Rhee said the first priority is to support and protect the health sector to contain the virus and introduce measures that slow contagion. "If there is not enough fiscal space, countries will need to re-prioritize from other expenditures," he said. Noting that containment measures are severely affecting economies, he said targeted support to hardest-hit households and firms is needed. This is a real economic shock unlike the Global Financial Crisis. Protect people, jobs and industries directly, not just through financial institutions, he said. Observing that the pandemic is also affecting the financial market functioning, he urged countries to use monetary and macroprudential regulations flexibly to provide ample liquidity, ease financial stress of industries and SMEs. "For emerging markets with limited fiscal space, they might need to consider how to use central bank balance sheets flexibly to help SMEs through risk sharing with the government," he said. Asserting that external pressures need to be contained, he said that countries should seek and utilize bilateral and multilateral swap lines and financial support from the multilateral institutions. "There can be a role for capital flow measures to secure external sector stability as a prerequisite to use more aggressive domestic policies to prevent lasting social and economic distress," he said. "Targeted support combined with domestic demand stimulus in a recovery will help to reduce scarring, but it needs to reach people and smaller firms." SEE ALSO: <a href="https://www.businessinsider.in/topic/coronavirus">Coronavirus News and Updates</a> <a href="https://www.businessinsider.in/policy/economy/news/india-unemployment-job-losses-at-many-companies/articleshow/75130701.cms">India’s looming jobs crisis is starting to unravel within the first 21 days of coronavirus lockdown</a>

IMF backs India's 'proactive' lockdown decision despite economic cost

<ul><li>CLSA believes that in the next 18 months, RBI might cut 75 basis points or 0.75% in interest rates. </li><li>It already cut its base lending rate by 1.35% this year. </li><li>CLSA expects base rate to come down to 4.4% by early FY21. </li></ul>The Reserve Bank of India (RBI) will have to take up an extra responsibility—of pushing the slowing growth in the country. In the last few months, central government too had played its part by reducing corporate taxes and other moves. But the sluggish economy might need more impetus, and the government may not have the cash for it. Research firm CLSA believes thatRBI might end up cutting 75 basis points or 0.75% in interest rates in the next 18 months. This will help banks lend more at lower interest rates, which will help push the economy. The banking regulator has consistently cut the rate at which it lends to banks at every monetary policy since February this year. In all, it reduced its repo rate by 135 basis points to 5.15%. But as per CLSA, it will have to come down to 4.4% by early FY21. “Absent fiscal options, the onus for stimulus remains with monetary policy. The government’s fiscal position has already been stretched by the corporate tax cut, which will widen the fiscal deficit by around 0.7% of GDP,” the CLSA report said. To provide a fiscal boost, the government had reduced corporate tax rate to 21.1% from 34.2%. While this came as good news to many companies, the exchequer has to pay for it. It will also translate to tightened budgets of state governments, which will spend less as tax revenue falls. Government is one of the largest spenders across schemes and measures, and is a key driver of the economy. Added to that, private entities are also not keen on expanding as capital goods imports have almost remained steady. Apart from the existing banking crisis which is leaving them weary of lending, corporates too are wary of growth in times when consumption is shrinking. In fact, large FMCG companies are resorting to price cuts to reverse the slowing trend. “Consumption prospects are clouded by declining rural real wage growth. On RBI’s estimate of sticky 3.8% nominal wage growth for rural labourers over the last 12 months, the rising inflation measure for rural labourers means their real wage growth has turned negative,” the CLSA report said.

India is fast running out of cash to boost the economy-- putting the onus on RBI

<ul><li>US stocks rose at the open after Biden signed the $1.9 trillion <keyword id="41832" type="PERSON" weightage="60" keywordseo="Stimulus-bill">stimulus bill</keyword> into law on Friday. </li><li>Bitcoin pared back gains after touching a record high above $61,000 over the weekend. </li><li><a href="https://newsletter.businessinsider.com/join/4np/10-things-opening-bell?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingestarkets&amp;utm_medium=ingest" target="_blank" rel="noopener">Sign up here for our daily newsletter, 10 Things Before the Opening Bell</a>.</li></ul>US stocks gained at the open with the <keyword id="62414" type="COMPANY" weightage="60" keywordseo="Dow">Dow</keyword> at a record high as investors hoped for strong economic growth following President Biden <a href="https://www.businessinsider.com/stimulus-biden-signs-trillion-covid-relief-package-checks-direct-payments-2021-3?utm_source=markets&amp;utm_medium=ingestgest" target="_blank" rel="noopener">signing the $1.9 trillion stimulus program</a> into law last week.Many Americans saw $1,400 stimulus checks land in their bank accounts over the weekend, while <a href="https://www.businessinsider.com/1400-stimulus-checks-already-landing-in-peoples-bank-accounts-2021-3?utm_source=markets&amp;utm_medium=ingestgest" target="_blank" rel="noopener">more direct deposits</a> are expected in the coming weeks.US bond yields drifted at a 13-month peak of 1.6% on Monday ahead of the <a href="https://www.federalreserve.gov/monetarypolicy/fomccalendars.htm" target="_blank" rel="noopener">FOMC announcing its latest monetary policy decision on Wednesday</a>. As <keyword id="31671" type="CITY" weightage="100" keywordseo="markets">markets</keyword> continue to worry about the pressures of inflation, Treasury Secretary Janet Yellen said over the weekend that the US <a href="https://www.businessinsider.com/treasury-secretary-janet-yellen-us-full-employment-next-year-forecast-2021-3?utm_source=markets&amp;utm_medium=ingestgest" target="_blank" rel="noopener">inflation risk remains small and "manageable.</a>" "Investor concerns now center on the speed with which the 10-year yield rises and whether the Fed will be forced to raise short-term rates sooner than expected," said Sam Stovall, CFRA chief investment strategist. "We think they won't."Here's where US indexes stood after the 9:30 a.m. ET open on Monday:<ul><li><a href="https://markets.businessinsider.com/index/s&amp;p_500_500" target="_blank" rel="noopener">S&amp;P 500</a>: 3,946.58, up 0.08%</li><li><a href="https://markets.businessinsider.com/index/dow_jones" target="_blank" rel="noopener">Dow Jones industrial average</a>: 32,906.56 up 0.39% (127.92 points)</li><li><a href="https://markets.businessinsider.com/index/nasdaq_composite" target="_blank" rel="noopener">Nasdaq composite</a>: 13,317.03, down 0.2%</li></ul><a href="https://markets.businessinsider.com/news/stocks/tencent-sheds-65-billion-government-crackdown-ant-group-2021-3-1030203312">Tencent shares tumbled 3.5% in Hong Kong on Monday</a>, meaning the company's value has fallen more than $65 billion in two days due to concerns that the Chinese authorities will ramp up scrutiny of the tech giant. Chinese regulators fined the do-it-all tech company $77,000 on Friday for not seeking approvals for deals. <a href="https://uk.tradingview.com/symbols/BTCUSD/" target="_blank" rel="noopener">Bitcoin</a> pulled back to around $56,289 on Monday after it rose above $61,000 over the weekend. A report said India could <a href="https://www.businessinsider.com/india-to-propose-cryptocurrency-ban-penalising-miners-traders-source-2021-3" target="_blank" rel="nofollow noopener">fine anyone in the country for even holding such digital assets</a>.<keyword id="6354418" type="UNKNOWN" weightage="60" keywordseo="oil-prices">Oil prices</keyword> fell. <a href="https://markets.businessinsider.com/commodities/oil-price?type=wti">West Texas Intermediate crude</a> fell 1.2%, to $64.82 per barrel. <a href="https://markets.businessinsider.com/commodities/oil-price?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingestts&amp;utm_medium=ingest">Brent crude</a>, oil's international benchmark, decline by 1.16%, to $68.32 per barrel.<a href="https://markets.businessinsider.com/commodities/gold-price">Gold</a> jumped 0.5%, to $1,728.90 per ounce.

Dow hits new record as Americans receive latest round of stimulus checks

Weak global cues as well as rising crude oil prices subdued India's key equity indices -- S&amp;P BSE <keyword id="6484188" type="General" weightage="20" keywordseo="sensex" source="Orion">Sensex</keyword> and NSE Nifty50 -- during Tuesday's mid-afternoon trade session. Globally, stock markets weakened following a decline in the US overnight as rising crude oil prices accelerated concerns about prolonged inflation and <keyword id="531974" type="General" weightage="20" keywordseo="monetary-policy-tightening" source="Orion">monetary policy tightening</keyword>. Among sectors, consumer durables and realty have gained the most, whereas, IT and Telecom have lost the most. Consequently, the 30- scrip sensitive index traded at 60,181.97 points, around 2.30 p.m., up 46.19 points or 0.077 per cent from its previous close. Besides, the NSE Nifty50 ended at 17,966.05 points, up by 20.10 points or 0.11 per cent. "Nifty opened higher and made an intraday high during the first 10 minutes of the day. It later fell in line with other Asian markets and made low in noon," said Deepak Jasani, Head of Retail Research, HDFC Securities. "A gradual recovery followed. Volumes on the NSE are in line with the recent average and the advance decline ratio is even." According to Gaurav Garg, Head of Research, CapitalVia Global Research: "Traders were cautious as a private report stated that the Reserve Bank is likely to change the stance of its monetary policy and hike rates from the first quarter of 2022." "Some concern also came after the World Bank said that the debt burden of the world's low-income countries rose by 12 per cent as countries responded to the Covid-19 crisis with massive fiscal, monetary and financial stimulus packages." SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/startups/news/former-sbi-chair-rajnish-kumar-joins-bharatpe-to-guide-its-transformation-to-a-small-finance-bank/articleshow/86963500.cms">Former SBI chair Rajnish Kumar joins BharatPe to guide its transformation to a small finance bank</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/finance/banks/news/rbi-has-barred-one-of-the-countrys-top-auditors-from-looking-at-the-books-of-any-company-regulated-by-the-central-bank/articleshow/86961150.cms">RBI has barred one of the country's top auditors from looking at the books of any company regulated by the central bank</a>

IT stocks decline led by global cues, oil prices and subdued equity indices

<ul><li>Consumer price index (CPI) inflation decreased to 3.15% in July 2019, dropping a few basis points from last month. In the same month last year, it was at 4.17%.</li><li>The country’s wholesale price index dropped to 1.08%. For the same month last year, it was 5.27%.</li><li>Since February, the RBI cut its interest rates by 1.35% in effect (including changing stance to accommodative).</li></ul> In his credit policy last week, RBI Governor Shaktikanta Das said that they have ‘done their part’ to push growing in a slowing economy, as they cut base interest rate by 0.35%. Looks like, they will have more to do and that too, soon. Today, the country’s wholesale price index dropped to 1.08%. For the same month last year, it was 5.27%. This was due to cheaper fuel and food costs. The country’s consumer price index (CPI) inflation decreased this month to stand at 3.15% in July 2019. In the same month last year, it was at 4.17%. “In such a situation, we believe that RBI may not pause the rate cut cycle as of now, but the magnitude of rate cuts would depend on the GDP numbers,” said a report by SBI Ecowrap. Slowing demand Low retail inflation means that the prices of essential commodities are stable. And wholesalers too are experiencing low demand, and are cutting rates to make sure that their stock moves fast. All in all, economic growth is so low that demand from both households and businesses are low. So, the central bank can increase the money supply in the system through more rate cuts to spur economic activity and consumption. The biggest worry for RBI is to balance growth with inflation. Releasing more money into the system will directly push up food and other commodity prices, stressing the poorest of the country. Easing, easing and more easing Since February, <a href="https://www.businessinsider.in/business/rbi-cut-interest-rates-by-35-basis-points-as-growth-sputters-and-inflation-cools/articleshow/70565859.cms">the RBI cut its interest </a>rates by 1.05% and also changed its stance to accommodative which accounts to yet another 0.25% of easing. It also promised to ensure banks pass them on. However, given the low level of inflation right now, after 4 straight rate cuts, RBI has less to worry about. “The good part is that we are seeing the transmission in India is happening quicker and by a larger magnitude than before. We also expect that more banks will take the initiative in coming days,” the report said. Lowering interest rates in the country can help the slowing growth in the country. The July auto sales slipped to a 20 year low, as it dropped by 31% landing a massive blow to the sector. Subsequently, over <a href="https://www.businessinsider.in/indian-auto-manufacturers-have-laid-off-350000-jobs-in-four-months/articleshow/70563890.cms">350,000 jobs were reportedly lost</a>, bringing the entire sector to a grinding halt. Dealerships have been shuttering down, while automakers are halting production. “We expect industrial growth to revive in the coming months backed by easy monetary policy, increase in lending and the government’s assurance to revive the economy with sector specific stimulus packages,” said a report by Brickwork Ratings. Reflecting this slowdown, industrial production registered a dismal 2% in June, as compared to 7% last year. “It has brought down the 3-month moving average growth to 3.6% as against the previous level of 3.9%,” the report said. In spite of all these downtrends, RBI is confident that India will clock in a <a href="https://www.businessinsider.in/sensex-and-nifty-react-little-to-rbi-decision-to-cut-interest-rate/articleshow/70566279.cms">GDP growth of </a>6.9% this year, just slightly lower than its previous estimate of 7%. It also believed that the growth will be led by the second half of the year. And to make sure that their predictions come true, RBI will have to open their purse strings further so that the country has more to spend and grow. SEE ALSO <a href="https://www.businessinsider.in/britannia-md-says-consumers-think-twice-before-buying-a-5-biscuit-raises-concerns-about-indian-economy/articleshow/70638256.cms">Forget cars, Indian consumers are wary of buying a ₹5 biscuit packet</a> <a href="https://www.businessinsider.in/the-maker-of-general-motors-and-toyotas-parts-in-india-is-folding-up-axing-thousands-of-jobs/articleshow/70603130.cms">The maker of General Motors and Toyota's parts in India is folding up — axing thousands of jobs</a>

India's inflation has dropped so low it may trigger another rate cut

\<ul class="summary-list"><li>Russia's former finance minister blamed Moscow's accumulation of rupees for bringing the ruble down.</li><li>Kremlin authorities have acknowledged the Russia has accumulated billions of rupees sitting in Indian banks.</li></ul>Mikhail Zadornov, Russia's former minister of finance, attributed the ruble's recent crash to the Kremlin's stockpile of rupees that are stuck in India.In an <a href="https://www.rbc.ru/opinions/finances/29/08/2023/64ec75029a794735468d3c7c" target="_blank" rel="noopener">opinion piece for RBC</a>, a local outlet, the economist called for the Russian Central Bank to intervene in the exchange rate markets, citing that the ruble's levels would not organically reorient themselves under today's environment.In his view, the ruble's current 95-per-dollar level is in part the result of Russia's inability to convert rupees it earned via exports into its own currency, leaving the rupees stranded.Energy trade between the countries blossomed since Russia was restricted by Western sanctions, but Moscow soon found out that the rupees used in the trade have little use in most global markets."We have nothing to buy in India, but we cannot return these rupees, because the rupee is an inconvertible currency," Zadornov wrote. He estimated that Russia has sent $30 billion worth of oil-related products to India, and imported $6 billion-$7 billion worth of products. The economist also cited other factors, such as stimulus given out to Russians. When this happens, demand for imports rises, therefore pushing the ruble down. He said the ruble could return to 85 against the dollar, if Russia abandons stimulus and the central bank tightens monetary policy. Among other ideas, he added that future export agreements should be met with repatriation requirements.Zadornov's writings caught the attention of the Kremlin. It's <a href="https://tass.com/economy/1666967" target="_blank" rel="noopener">state-run Tass agency</a> said Russia's Energy Ministry denied he statements that stranded rupees weakened the ruble.Moscow previously has acknowledged that <a href="https://markets.businessinsider.com/news/currencies/russia-india-ruble-rupee-sanctions-trade-imbalance-yuan-weapons-deficit-2023-5">Russia has accumulated billions of rupees</a> that are sitting in Indian banks.Russia prefers to be paid in Chinese yuan, which has become the <a href="https://markets.businessinsider.com/news/currencies/dollar-vs-yuan-chinese-currency-usd-russia-moscow-beijing-sanctions-2023-4?utm_medium=ingest&amp;utm_source=markets" rel="">most-used foreign currency</a> in Russia. Meanwhile, Moscow has reportedly been hesitant about using the rupee due to exchange-rate volatility.<a href="https://markets.businessinsider.com/news/currencies/russia-dollar-currencies-india-yuan-rupee-china-trade-sanctions-moscow-2023-5?utm_medium=ingest&amp;utm_source=markets" rel="">Russia and India previously suspended negotiations over using rupees</a> for trade between the two countries. Russia and India remain deadlocked in a currency dispute that has also <a href="https://markets.businessinsider.com/news/currencies/russia-weapons-sales-india-ruble-rupee-euro-dirham-s400-dedollarization-2023-4?utm_medium=ingest&amp;utm_source=markets" rel="">frozen weapons sales</a> between the two countries.

Former Kremlin official blames the ruble's crash on Russia's stockpile of rupees that's stranded in India

Mumbai, Mar 27 () Analysts were unanimous in welcoming RBI's rate cuts, forbearance on loans and liquidity easing measures, saying the economy requires stimuli in the present circumstances. Some of them also said that the Reserve Bank of India (RBI) may have to deepen the rate cut if the COVID-19 crisis prolongs. The RBI, which advanced a meeting of the rate setting panel by a week, announced a 0.75 per cent cut in its policy rates, infusion of Rs 3.76 lakh crore of liquidity through moves like a cut in cash reserve ratio and also allowed banks to not treat any term loans as NPAs for three months if there is no repayment. "RBI, very correctly so, announced a comprehensive bazooka covering all aspects of the economy by taking measures system-wide both through liquidity, rates and regulatory forbearance (retail as well as for industry) and also targeted measures to manage the corporate bond markets," Kotak Mahindra Bank's senior economist Upasana Bharadwaj said. She said the measures should help in tiding issues which many banks/institutions were fearing and will go a long way in cushioning the dislocations in various markets. The bank expects additional scope for 0.40-0.50 per cent cut depending on the nature of spread of COVID-19, she added. Singaporean lender DBS's economist Radhika Rao said RBI has pulled out all stops with the aggressive rate cut and said the intention seems to be to reduce cost of funds while lowering incremental capital burden on banks. The central bank has also addressed banks' reticence in buying commercial paper by making it possible to hold them under the hold to maturity portfolio rather than mark to market, which affects their earnings, she said. "While India has limited fiscal space, monetary policy continues to do the heavy lifting at a time when growth is at a severe risk in the near term," SBI Mutual Fund's chief investment officer Navneet Muhnot said. He said we need to explore unconventional measures on fiscal, administrative and regulatory fronts on the lines of lead taken by RBI. Consulting firm Deloitte's partner Himanish Chaudhuri said the announcement is welcome and has allayed a lot of concerns which the industry was having. Industry lobby CII's director general Chandrajit Banerji welcomed the RBI moves but added that it expects the central bank to extend the repayment moratorium if the crisis prolongs. Domestic rating company Acuite's president Suman Chowdhury said while the rate cut of 75 bps is indeed sharp and goes beyond the market expectations, the extent of the transmission by the banking system will have to be seen. AA SHW DRR

Analysts welcome RBI stimulus measures

<ul class="summary-list"><li>The United States has the most <keyword id="1754604" type="PERSON" weightage="60" keywordseo="coronavirus">coronavirus</keyword> cases and deaths of any country in the world.</li><li>The US ranks ninth in total cases per capita and in deaths per capita.</li><li>Experts predict <a href="https://www.businessinsider.com/us-third-wave-coronavirus-cases-hospitalizations-surge-2020-10">the worst of the nation's third surge</a> of cases is yet to come. </li><li>Here's how the US's coronavirus outbreak compares to other countries on 11 key metrics.</li></ul>When Dr. Anthony Fauci was asked whether the US had <a href="https://www.businessinsider.com/fauci-says-cant-deny-us-has-worst-covid-19-outbreak-2020-8">the world's worst coronavirus outbreak</a> in August, he responded: "The numbers don't lie.""When you look at the number of infections and the number of deaths, it really is quite concerning," Fauci, the director of the National Institute of Allergy and Infectious Diseases, <a href="https://www.cnbc.com/2020/08/05/dr-fauci-agrees-the-us-has-the-worst-coronvirus-outbreak-in-the-world-the-numbers-dont-lie.html">told CNN's Sanjay Gupta</a>.Indeed, the US has more coronavirus cases than any other country: more than 8.6 million. Given the difficulty of identifying and recording cases — especially infections contracted early in the pandemic — researchers estimate that <a href="https://www.businessinsider.com/real-us-coronavirus-cases-compared-to-official-count-2020-7">the real tally is far higher</a>. The US also has the highest number of deaths: more than 225,000. That's almost double the amount recorded in India, the country with the world's third-highest death count.Like cases, deaths are likely also undercounted in the US: A <a href="https://jamanetwork.com/journals/jama/fullarticle/2771761?guestAccessKey=92828e1e-363a-491b-83af-ec3ce0cde3f6&amp;utm_source=For_The_Media&amp;utm_medium=referral&amp;utm_campaign=ftm_links&amp;utm_content=tfl&amp;utm_term=101220&amp;utm_term=101220">recent study</a> suggested that 75,000 additional deaths should have been attributed to COVID-19 from March to July. But a stronger way to compare coronavirus infections and deaths between countries is to look at the figures per capita. This controls for the US's large population. In cases per capita, the US ranks ninth in the world (excluding countries, territories, and microstates with populations with under 1 million).More than 26,000 out of every 1 million people in the US have been infected with the coronavirus. The US also ranks ninth in terms of deaths per capita: For every 1 million people, 69 people have died of the virus. That puts it behind Spain and Mexico but ahead of the United Kingdom. These metrics account for all cases and deaths recorded so far. When it comes to the scale of the US's current outbreak, however, its cases look worse than many other countries' tallies.<h2>The latest US outbreak tops the charts</h2>The US is in the midst of its third surge of infections, which already seems to have become its largest yet. All but two states have seen new daily cases climb over the past two weeks, according to data from John Hopkins University.Part of the reason for this, experts say, is that cases never dropped sufficiently."If the rates never get that low, and basic public-health measures are not universally adopted, and then you bring people indoors to share a meal together, you're kind of putting together the perfect storm," Ingrid Katz, an assistant professor at Harvard Medical School, <a href="https://www.businessinsider.com/us-third-wave-coronavirus-cases-hospitalizations-surge-2020-10">previously told Business Insider</a>. "Unfortunately this was completely anticipated."The US now ranks second in the world in terms of new daily cases. The country is seeing a weekly average of nearly 69,000 new cases per day — an increase of more than 60% since October 1. When controlling for population size, the US ranks 25th in the world in terms of new daily cases per capita. In the last week, around 208 daily cases have been recorded, on average, for every 1 million people.European nations like Belgium, France, and the UK rank higher in new cases per capita, since infections in those countries have <a href="https://www.businessinsider.com/europes-spike-coronavirus-cases-relaxing-lockdown-pandemic-fatigue-2020-10">steadily risen since August</a>. <h2>As cases climb, deaths will likely follow</h2>On average, coronavirus deaths tend to lag at least two weeks behind infections. So researchers expect to see US deaths climb in the coming weeks given the recent record-high days of new cases.Already, the US ranks first in the world in terms of its weekly average of new daily deaths. The US is lower when ranking new daily deaths per capita, however. On average, the country is seeing around 2.4 daily deaths for every 1 million people. The University of Washington's Institute for Health Metrics and Evaluation predicts that more than 160,000 more people in the US could die of the coronavirus from now through February 1. That would make this third surge of infections the deadliest yet.<h2>Testing doesn't fully account for the recent surge</h2><keyword id="6354862" type="UNKNOWN" weightage="60" keywordseo="trump">Trump</keyword> has repeatedly insisted that the US's high case count is the result of increased testing. The US leads the world in terms of total tests administered: nearly 133 million so far. But several countries are administering more tests relative to their population size. Singapore, for instance, is testing nearly 3,500 out of every 100,000 people each day, on average.The US ranks 11th in testing per capita. Experts say testing doesn't fully account for the rising number of coronavirus infections in the US. If that were the case, the nation's test-positivity rate — the share of coronavirus tests that come back positive — would be flat or going down. Instead, the test-positivity rate rose from 4.6% on October 1 to around 6.2% on Sunday.When comparing how nations have spent money to address the economic consequences of the pandemic, Japan leads the rest. It has spent around 20% of its GDP on a COVID-19 stimulus package, according to data from the International Monetary Fund.The US, meanwhile, ranks fourth among G20 countries in terms of stimulus spending. The Trump administration has delivered <a href="https://www.reuters.com/article/us-usa-election-economy-factbox/trump-biden-offer-clashing-visions-on-reopening-economy-idUSKBN2681FW">$3.4 trillion in coronavirus aid</a> so far. With negotiations over a second round of relief checks deadlocked in Congress, it's now increasingly unlikely that <a href="https://www.businessinsider.com/senate-republicans-stimulus-deal-democrats-trump-pelosi-economy-oppose-bigger-2020-10">a new bill will be approved</a> before Election Day on November 3.This story has been updated with new data. It was originally published October 21, 2020.

You Searched For "monetary stimulus india" and got 12 results

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IT stocks decline led by global cues, oil prices and subdued equity indices

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India's inflation has dropped so low it may trigger another rate cut

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Former Kremlin official blames the ruble's crash on Russia's stockpile of rupees that's stranded in India

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Analysts welcome RBI stimulus measures

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How the US coronavirus outbreak compares to other countries in 11 charts

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