What's New A welcome step in light of addressing the deteriorating economic conditions.

RBI's Monetary Policy Committee (MPC) met on March 27, 2020, ahead of its scheduled time in the first week of April 2020 and voted for an emergency rate cut of 75 bps. Consequently, taking the policy repo rate to an unprecedented low of 4.4% from earlier 5.15% and reduced the reverse repo rate by an even bigger number of 90 bps to 4.0 %. With a stimulus package (Rs. 1.7 trillion) announced by the government a day before, a big repo rate cut along with a combination of measures to boost liquidity by RBI demonstrates the policy coordination between the two, which will be key to help arrest the economic slowdown due to COVID-19 outbreak. (March 27, 2020)

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It's time for the government to shift its attention from achieving the fiscal target.

Rolling 12-month sum of India's gross fiscal deficit as a % of GDP slightly improved to 4.1% in February when compared to 4.3% in the last month. However, when compared to the values in the last two years, it continues to remain high. In absolute terms, it stood at Rs. 10.3 trillion, equivalent to 135.2% of its revised budgeted estimate for FY2019-20 (FY2019-20 represents the period April 2019-March 2020). The primary reason beh...

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Latest March 31, 2020

Non-Food Bank Credit

Sluggish pace of credit growth to industrial sector in March, 2020.

Growth in the non-food bank credit (NFBC) slowed down to 7.3% YoY in February 2020 from 8.5% YoY in January. The figures for February charted a slower growth in overall credit as credit to industry and priority loans moderated to 0.7% YoY and 0.3% YoY respectively. Only the growth in personal sector loans has improved in February with credit to vehicles witnessing a three-month expansion at 10.3% YoY.

Loans ...

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Latest March 31, 2020

Eight Core Industries

Cement, refinery, coal and electricity sectors support infrastructure output growth in Feburary.

The growth in eight-core industries' (infrastructure output) in February, 2020 grew at the fastest pace in the last 10months. It expanded by 5.5% YoY in February compared to 1.4% YoY in the pervious month. The acceleration in eight core output which comprises 40.3% of the weights in the index of industrial production basket was aided by an increase in output of five industries ie, coal, cement, electricity, petroleum refinery products and fert...

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A welcome step in the light of addressing the deteriorating economic conditions.

RBI's Monetary Policy Committee (MPC) met on March 27, 2020, ahead of its scheduled time in the first week of April 2020 and voted for an emergency rate cut of 75 bps. Consequently, taking the policy repo rate to an unprecedented low of 4.4% from earlier 5.15% and reduced the reverse repo rate by an even bigger number of 90 bps to 4.0 %. It also reduced the cash reserve ratio (CRR) by 100 bps to 3%. With this, RBI follow...

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Upward trajectory in India's forex reserves reached USD 471.3 billion in January on the back of foreign currency assets.


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

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