India’s inflation based on WPI and CPI showed divergent trend for the year ended March’24 (FY24) but from different initial level. While CPI moved down to 4.85% in March’24 from a high of 7.4% in July’23, WPI moved up to 0.53% from a low of – 4.2% in June’23. The annual average for CPI works […] The post Inflation Analysis – FY24 appeared first on Indian Economy & Business Analysis ..read more

Recap – As per MOSPI survey, there are a total of 2.46 lakh factories in the country with Rs 49.7 lakh crore of capital invested (2019-20). While profits for these factories grew by only 1% during 2014-2020, wages grew by 10%, This contrasts with growth of 43% in profits and 11% in wages during 2002-08, […] The post Annual Survey of Indian Industries – Part II appeared first on Indian Economy & Business Analysis ..read more

The results of Annual Survey of Indian Industries for the year FY21 and FY22 released recently shows an increase of 30% and 56% in profits during the two years. This looks contrary to the wide spread stress caused due to the pandemic. However, the topline did come down, although by a modest amount of 2%. […] The post Annual Survey of Indian Industries – Part I appeared first on Indian Economy & Business Analysis ..read more

Derivates market in India has caught the fancy of investors with the turnover increasing over two hundred times in last five years! While derivatives serve an important function as hedging instrument, a sharp increase like this could be a sign of speculation. However, before debating on the speculative nature of trade and other ills, here […] The post Derivatives Market in India – An Overview appeared first on Indian Economy & Business Analysis ..read more

After sharp increase for two consecutive years, food prices have recorded a decline of 14% in 2023 as per Food & Agriculture Organization (FAO). However, prices are still about 26% higher than 2020 figure. Of the five sub-groups, sugar continued to record inflation and is up 82% from its 2020 level now. Here is a […] The post Global Food Price Inflation – Understanding the Dynamics appeared first on Indian Economy & Business Analysis ..read more

Purchasing Power Parity (PPP) is an important economic concept, requiring significant efforts to arrive at an authentic value. World Bank carries out an extensive exercise, called International Comparison Program (ICP), to get a fair value and understand where different economies are placed. As per the latest World Bank statistics, global GDP (PPP) stood at $164.1 […] The post Purchasing Power Parity (PPP) – An Overview appeared first on Indian Economy & Business Analysis ..read more

Financial structure of a country is a network of institutions such as Banks, NBFCs, HFCs, Insurance companies, mutual funds and so on. All of these are connected to each other as lenders or borrowers. While the interdependency helps channelize savings into investments, it can also trigger risk events as seen during the global financial crisis […] The post Analyzing India’s Financial Sector Interconnectedness appeared first on Indian Economy & Business Analysis ..read more

Central government’s total debt is projected to increase to Rs 187 lakh crore by the end of FY25, as per the budget projections. This corresponds to an increase of 8.7% over FY24, the lowest since FY17. The debt had increased by a sharp 18% in FY21. As a percent of GDP, a critical parameter to […] The post Government Debt – Analyzing the Movement appeared first on Indian Economy & Business Analysis ..read more

The Monetary Policy Committee (MPC) completed five years of existence in September this year. The committee was mandated to maintain CPI inflation within band of 4%+-2%, called Flexible Inflation Targeting (FIT). Before its formation, while RBI was required to manage inflation, there was no specific inflation target assigned. So, did FIT help India rein-in inflation? […] The post Has Inflation Targeting Delivered?? appeared first on Indian Economy & Business Analysis ..read more

National Asset Reconstruction Company Ltd (NARCL), or the ‘Bad Bank’, finally received license from RBI yesterday, a proposal floated during the last budget. The formation of government backed NARCL is a novel experiment which should help take a focussed view to resolve NPAs while freeing bank management to devote their energy on core banking. Here […] The post The ‘Bad Bank’ – Understanding the Structure appeared first on Indian Economy & Business Analysis ..read more