Top economic news of the day

India Infoline News Service | Mumbai |

The government will in the current fiscal borrow Rs6trn, up from Rs5.63trn last year, as it repays past liabilities and uses debt to bridge revenue shortfall.

The Reserve Bank of India Governor said that the target of reaching CPI inflation rate at 8% by the end of the current fiscal is on course. He was also bullish that the country can achieve a sustainable growth of 7-8% and it is absolutely feasible. (BS)

Finance Minister in his Budget Speech said that the composite FDI (including Foreign Direct Investment, Non-Resident Indians and Foreign Institutional Investment) cap has been raised to 49% in Insurance sector. (BS)

The government will in the current fiscal borrow Rs6trn, up from Rs5.63trn last year, as it repays past liabilities and uses debt to bridge revenue shortfall. (BS)

India’s defence budget went up 12% in 2014-15 from the previous year, to Rs2.29trn, and opened up the defence sector to Foreign Direct Investment, though only to 49% from 26%, ensuring that Indians will continue to hold majority shareholding. (BS)

Standard & Poor's Ratings Services may lower the rating in the next year or so if the new government proves unable to reverse India's low economic growth. However, it could revise the outlook to stable if the administration can restore some of India's lost growth potential and consolidate its fiscal accounts. (BL)

Global rating agency Fitch reacted cautiously to Budget proposals saying they are broadly credit positive but that implementation will be the key, as it stopped short of making any pronouncement on sovereign rating side. (ET)

Outlining the roadmap for fiscal consolidation, Finance Minister said the government will retain the fiscal deficit target for 2014-15 at 4.1% of GDP and reduce it further to 3% by 2016-17. (ET)
 

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