Fiscal deficit of the government at Rs. 5.47 trillion in July'19 higher than that in the comparable period of the pervious year.

In July'19 the central government's gross fiscal deficit stood at Rs. 5.47 trillion (77.8% of the budgeted estimate (BE) for FY20) lower than Rs. 5.40 trillion (86.5% of BE of FY20) in July'18. The slowdown in the economy and lower than expected collection of GST revenue collection can have an bearing on fiscal deficit. The government needs to boost consumer confidence, otherwise a perceived cyclical slowdown might turn into a deeply wounded structural slowdown. (August 30, 2019)

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Latest September 12, 2019

Consumer Price Index (CPI)

Higher food prices led to rise in retail inflation in August.

India's CPI inflation increased to a 10-month high of  3.21% year-on-year (YoY) in August 2019 from 3.15% YoY in July 2019. Retail inflation has continued to remain below RBI's median inflation target of 4% for more than a year. The rise in headline inflation was on account of food prices which rose to 2.3% YoY, highest in 15-months in contrast with 0.3% YoY in the comparable month last year.

The inflat...

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Latest September 12, 2019

Industrial Production

IIP growth rebounds to 4.3% YoY in July 2019 amidst a weak economy.

The growth in index of industrial production (IIP) registered a broad-based uptick of 4.3% YoY in July 2019 after declining to a four-month low of 2% YoY in the previous month. However, the growth was lower compared to 6.5% YoY in the same month last year. The recovery in IIP was in line with growth in eight core industries output which accelerated to 2.1% YoY in July. The composite Purchasing Managers' Index (PMI) produced by IHS, too signall...

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Latest September 9 , 2019

Exchange Rate

Rupee depreciated in August on account of FIIs outflows amid weak global sentiment.

The exchange rate of the Indian Rupee(INR) along with other major currencies such as US Dollar, Euro, and Japanese Yen are published by the Reserve Bank of India on a monthly and daily basis. The spot exchange rate specifies how much Indian rupee is equivalent to a unit of the specified currency. The Indian rupee followed a pegged exchange rate system till 1991 after which it was shifted to a floating exchange rate system following an economic crisis in the country.

The...

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Latest September 9, 2019

Foreign Exchange Reserves

India's forex reserves jumps to USD 429.6 billion driven by rise in gold reserves.


Foreign Exchange Reserves of India consists of cash, gold, bonds, bank deposits and financial assets denominated in foreign currencies. (Primarily US dollars in the forms of US treasury bonds and institutional bonds).

Even though India is the largest gold-consuming nation, the share of gold in total forex reserves is much less than most developed nations. The share of gold in total forex reserves has fallen from 78% prior to liberalizatio...

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August 31, 2019

Non-Food Bank Credit

Need to increase the availability of credit to MSME sector.

India’s non-food bank credit marginally increased by 11.4% year-on-year (YoY) after moderating to a 10-month low of 11.1% (YoY) in June’19. The availability of the credit to the sectors increased substantially from 10.6% (YoY) in the comparable month last year.  Considerable increase in the flow of funds was witnessed in the credit to services sector and a slight increase in the availability of personal loans. On the other hand, the availability of credi...

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