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INR Liquidity in a cautious zone?
Read Time: 3 minutesOvernight at 6.50% – Apna Time Ayega! There was a time when system liquidity was 3.4 lac cr in deficit. Then there was a VRR. Then another. And yet another. Sometimes they did it twice a day ! They even bought USD. The powers that be said in so many words that…
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Indain States’ Finances
Read Time: 2 minutesState Finances: Lower grants keep states’ revenue receipts growth muted • We analyzed finances of 24 states governments (our sample states) for the first nine months of FY24. Our analysis shows that during Apr-Dec 2023, states’ total receipts recorded a growth of 12% YoY to INR 28.7tn, lower than the center’s receipt…
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RBI Panel keeps repo rate unchanged
Read Time: < 1 minuteRBI keeps repo rate unchanged at 6.50% but market already got a rate cut 🔻 of 25 bps in the last few days – While policy rate is at 6.50%, since some months the overnight rate was at 6.75% (near the MSF level). Because since past 4-6 months, banking liquidity was…
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A short insight on Liquidity Deficit
Read Time: 2 minutesA large enough liquidity deficit has become a persistent feature in the Indian banking system in recent weeks, pushing interbank rates often above the monetary policy corridor, requiring the RBI to inject liquidity. Does this mean the RBI’s stance has de dacto changed? It may be tempting to think so but there…
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JNCH launches Export Monitoring & Analysis System (X-MAS) AA/EPCG Schemes
Read Time: < 1 minuteIn the step towards digital and providing online facility to Exporter / Importers, with regards to entering and uploading details and documents in respect of Advance Authorisation and Export Promotion Capital Goods (EPCG) Scheme, The JNCH has developed a new system called Export Monitoring & Analysis System (X-MAS) The Export Monitoring &…
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India’s Cross Border Trade 2023 Macro trends
Read Time: 3 minutesIndia’s Trade Statistics for 2023 The Department of Commerce recently unveiled India’s trade statistics for December 2023, providing insights into the country’s economic performance. These statistics, compiled by the Directorate General of Commercial Intelligence and Statistics (DGCI&S) for merchandise trade and the Reserve Bank of India (RBI) for services trade, shed light…
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EU’s New Customs Norms
Read Time: 2 minutesIntroduction to EU’s New Customs Norms The European Union (EU) is set to implement a new paperless customs system, starting June 3, 2024, significantly impacting Indian exporters. This change is crucial as the EU is a major trade partner, accounting for 17% of India’s merchandise exports. In 2022-23, India exported goods worth…
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Minor changes in the RBI Circular: Bank Dealings – FX Risk Hedging
Read Time: 2 minutesOn January 5, 2024, the RBI’s Financial Markets Regulation Department released an important circular concerning “Risk Management and Inter-Bank Dealings – Hedging of Foreign Exchange Risk.” Set to be effective from April 5, 2024, this document revises the previous guidelines from April 7, 2020. The significant changes in the circular are: These…
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Red Sea crisis- A thing to worry or ignore?
Read Time: 2 minutesImpact on Trade and Costs The increasing crisis in the Red Sea is poised to have substantial repercussions on global trade, with indications of potential shipping cost increases of up to 80% and a 30% rise in insurance premiums. This escalation is largely attributed to recent attacks by Yemen-based Houthi militants in…
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Exports Declining? Well, that is worrisome!
Read Time: 2 minutesExport and GDP Growth Trends Between 2014 and 2023, India’s goods and services export growth, measured in US dollars, declined to 164% (CAGR-5.6%), compared to the impressive 520% (CAGR-17.9%) growth seen from 2004 to 2014. Similarly, GDP growth during the same period reduced to 183% (CAGR-6.9%) from 306% (CAGR-11.8%) in the previous…
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Export Incentives by the Indian Government
Read Time: 2 minutesExport Promotion Initiatives The Indian Government has recently undertaken a series of export promotion initiatives to boost the country’s trade activities. These initiatives include the launch of a new Foreign Trade Policy, an extension of the Interest Equalization Scheme, and assistance through various schemes like the Trade Infrastructure for Export Scheme (TIES)…
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India Rejects Russian Oil Suppliers’ Yuan Payment Demand Amid Tensions
Read Time: 2 minutesIndia’s relationship with Russia is complicated by the latter’s demand for payment in yuan for crude imports, which India rejects to do. Russian oil suppliers are struggling to use their excess supply of rupees, while demand for yuan has grown due to China’s economic reliance on Russia. The Chinese currency has replaced…
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India: Growth & Outlook
Read Time: 6 minutesGrowth moderated to 7.2 percent in FY22/23. The post-COVID rebound faded, and the government consolidated recurrent spending. Growth is projected to decline further in FY23/24 as it revertsto its potential rate (6-6.5 percent), with external downside risks. Extreme poverty hovers around 11 percent, while moderate poverty is around 45 percent. To increase…
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RBI pushing CBDC for Call Money Markets?
Read Time: < 1 minuteThe Reserve Bank of India (RBI) has initiated a wholesale pilot of the Central Bank Digital Currency (CBDC) in the call money market. According to the RBI Handbook of Statistics on the Indian Economy – 2022-23, the e-rupees or digital rupees in wholesale and retail circulation amounted to Rs 16.39 crore…
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India’s FTA journey
Read Time: 3 minutesIndia’s FTA journey can be divided into 3 distinct phases. These phases demonstrate India’s adaptability and willingness to explore new avenues for economic growth and cooperation on the international stage. Phase 1: 1975-2004Focus was on reducing tariffs to promote merchandise trade -India embarked on its FTA journey in 1975 by signing the…
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Global bond index inclusion to impact rupee forwards premiums.
Read Time: 4 minutesThe inclusion of Indian bonds in JPMorgan’s Global Bond Index has brought optimism to the medium-term outlook for the Indian rupee. While the immediate impact is limited, the expectation is that in the near term, bond yields and the rupee may experience reversals due to global market dynamics. However, by the end…
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Export Promotion Organisations in India
Read Time: < 1 minuteFederation of Indian Export Organisations(FIEO)- Apex body of all Export Promotion Councils/Commodity Boards/Export Development Authorities(Export Promotion Organisations) in India
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Critical minerals: India eyes sustainable self-reliance
Read Time: 3 minutes[responsivevoice_button rate=”1.1″ pitch=”1.1″ volume=”2″ voice=”UK English Female” buttontext=”LISTEN”] India has taken significant steps to improve its mineral and rare earth sector by becoming a member of the Mineral Security Partnership and compiling a list of 30 critical minerals. These developments aim to ensure responsible production and meet economic needs. However, India needs…
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De-dollarization still a long way off, Indian minister says after BRICS talk of a common currency
Read Time: 4 minutesOil trades have sometimes been settled in the Chinese yuan Russian ruble or Indian rupee, but the idea of “de-dollarization” — or moving away from the U.S. dollar to settle trades in other currencies — is still far away.“I would like to be able to transact everything in rupees. That’s my personal [view],” India’s Oil…
