High growth rate to repeat in 2008 (The Hindu Business Line 1st Jan 2008) The Finance Minister, Mr P. Chidambaram, sounded confident and upbeat when Business Line caught up with him as 2007 rolled to an end. Though there are some murmurs that the economy could slow down in 2008, the Finance Minister did not reveal any trace of worry when asked about his projections for the coming year. Declining to get into any specifics, all that a smiling Finance Minister said was “let us see.”
The clue to Mr Chidambaram’s confidence could be in his assessment that the current fiscal would see an economic growth of near 9 per cent. “I am not changing my growth forecast for 2007-08 and it continues to be close to 9 per cent. The average for the last four years has been 8.6 per cent. I am sure the growth in 2007-08 would also be at that average. For next year (2008-09), I am confident that with more investments taking place, we can aim to grow at 9 per cent.” This is what he said on the sidelines of a public function in the Capital on New Year eve. More
Fiscal deficit still in comfort zone (Business Standard 1st Jan 208) At Rs 96,274 crore, it is 63.8 per cent of the Budget estimate.
In an indication that the central government has managed to keep its expenditure under control even as a buoyant economy generates higher revenues, the Centre’s fiscal deficit during April-November stood at Rs 96,274 crore ($24.44 billion) or 63.8 per cent of the Budget estimate for 2007-08. The fiscal deficit during the same period of the previous year was 72.8 per cent.
More
Current account deficit drops to $5.5 bn (Business Standard 1st Jan 2008)
India’s current account deficit during July-September 2007 narrowed to $5.5 billion from $6.3 billion a year earlier. A near doubling of remittances by non-resident Indians (NRIs) kept the current account deficit in check despite a widening of the trade deficit. The country’s current account deficit accounts for roughly 0.5 per cent of gross domestic product (GDP).
The trade deficit increased to $21.7 billion in the second quarter of the current financial year as against $16.8 billion a year earlier, said the Reserve Bank of India (RBI) in its data on India’s balance of payments developments during July-September this year. T0he increase in trade deficit followed a slowdown in export growth and a rise in non-oil imports. More
External debt at $190.5 bn (Business Standard 1st Jan 2008)
India’s external debt rose by $9.9 billion to $190.5 billion at the end of September 2007 over $180.57 billion on June 30, 2007.
The stock of outstanding external debt was pushed by a rise in external commercial borrowings (ECBs), NRI deposits, multilateral debt and short-term debt.
The valuation change arising out of weakening of the dollar against major international currencies and the Indian rupee could explain about $5 billion increase in debt.
During the half year (April-September), the external debt stock in terms of the US dollar has risen by $21 billion (12.3 per cent), of which $7 billion is accounted for by the depreciation of the dollar in the international market, according to data released by the government. More
The clue to Mr Chidambaram’s confidence could be in his assessment that the current fiscal would see an economic growth of near 9 per cent. “I am not changing my growth forecast for 2007-08 and it continues to be close to 9 per cent. The average for the last four years has been 8.6 per cent. I am sure the growth in 2007-08 would also be at that average. For next year (2008-09), I am confident that with more investments taking place, we can aim to grow at 9 per cent.” This is what he said on the sidelines of a public function in the Capital on New Year eve. More
Fiscal deficit still in comfort zone (Business Standard 1st Jan 208) At Rs 96,274 crore, it is 63.8 per cent of the Budget estimate.
In an indication that the central government has managed to keep its expenditure under control even as a buoyant economy generates higher revenues, the Centre’s fiscal deficit during April-November stood at Rs 96,274 crore ($24.44 billion) or 63.8 per cent of the Budget estimate for 2007-08. The fiscal deficit during the same period of the previous year was 72.8 per cent.
More
Current account deficit drops to $5.5 bn (Business Standard 1st Jan 2008)
India’s current account deficit during July-September 2007 narrowed to $5.5 billion from $6.3 billion a year earlier. A near doubling of remittances by non-resident Indians (NRIs) kept the current account deficit in check despite a widening of the trade deficit. The country’s current account deficit accounts for roughly 0.5 per cent of gross domestic product (GDP).
The trade deficit increased to $21.7 billion in the second quarter of the current financial year as against $16.8 billion a year earlier, said the Reserve Bank of India (RBI) in its data on India’s balance of payments developments during July-September this year. T0he increase in trade deficit followed a slowdown in export growth and a rise in non-oil imports. More
External debt at $190.5 bn (Business Standard 1st Jan 2008)
India’s external debt rose by $9.9 billion to $190.5 billion at the end of September 2007 over $180.57 billion on June 30, 2007.
The stock of outstanding external debt was pushed by a rise in external commercial borrowings (ECBs), NRI deposits, multilateral debt and short-term debt.
The valuation change arising out of weakening of the dollar against major international currencies and the Indian rupee could explain about $5 billion increase in debt.
During the half year (April-September), the external debt stock in terms of the US dollar has risen by $21 billion (12.3 per cent), of which $7 billion is accounted for by the depreciation of the dollar in the international market, according to data released by the government. More
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