Daily Economic News - 21 April 2014

Crisil report: Return to heyday of 9% annual growth gone
Analytical firm CRISIL Research said on Sunday it expected the economy to grow by 6.5 per cent yearly, on an average, from 2014-15 to 2018-19 — roughly the period of the next government if it lasts a full term. This is way down from the nine per cent annual growth rate from 2003-04 to 2010-11, briefly snapped by the global financial crisis of 2008-09, it said. Sales of products in various sectors — automobiles, consumer durables, housing, cement, steel — would be substantially impacted, as a result. This would have repercussions on poverty reduction and employment generation. The forecast is premised on a decisive mandate in the coming general elections”. If a rag-tag coalition comes, economic growth could be stuck at five per cent annually in the next five years.
(Source: Business Standard)

India cuts exposure to US treasury securities by $1.1 bn

India reduced its exposure to US treasury securities in February along with other BRICS economies due to a slowdown in portfolio investment resulting in lower surpluses in these economies. India cut its exposure in US treasury bonds by 1.6 per cent, or $1.1billion, in February to $67 billion . The Reserve Bank of India, which accounts for a bulk of India's investments in US treasury bonds, sold US dollars worth 530 million in February to meet local currency demand, which could have prompted it to pull out from some of its safe haven investments in US treasuries.

(Source: The Economic Times)

Forex reserves increase by $2.8 bn
India's foreign exchange reserves have increased by $2.8 billion to $309.5 billion, the RBI said on Friday. Reserves rose for the seventh straight week since February 21 as overseas investors poured in dollars, expecting a stable and pro-reform government post the elections.
(Source: The Economic Times)

Gems and jewellery exports drop 9 pct in 2013-14
India's gems and jewellery exports, which contribute about 15 per cent of the country's overseas shipments, fell by about 9 per cent to USD 39.5 billion in 2013-14. The government took steps last year to contain gold imports in a bid to narrow the current account deficit. It raised the import duty on the metal to 10 per cent and made it mandatory for traders to export 20 per cent of imported gold, creating a supply crunch in the domestic market. India's overall exports touched USD 312.3 billion in 2013-14, short of the target of USD 325 billion.
(Source: The Financial Express)

Thaiindianet.Team

21 April 2014