The use of RBI capital to strengthen public sector banks will have many positive implications for the economy -- and a few manageable downsides, points out R Jagannathan.
The decline in inflation was broad-based across major commodity groups except housing and fuel and light.
It said that the GDP growth has averaged 7.3 per cent from 2014-15 to 2017-18, which is the highest among the major economies of the world.
Shaktikanta Das said in Washington, DC, that there was nothing sacrosanct about the 25 bps rate cut and that monetary policy could be well served by calibrating the size of the policy rate to the dynamics of the situation, and the size of the change itself could convey the stance of policy.
In 2015, India chemicals industry had a market size of $144 billion.
Sharp compression in imports and declining exports has narrowed the country's trade deficit to 15-month low of $10.3 billion in June.
One of the major advantages of buying Iran crude is the additional credit period of 90 days that the country gives to India, compared to 30 days by other countries.
To not default, Greece's current deficit of 14% of GDP will have to fall to 5% which is unlikely, says Martin Feldstein.
Deutsche Bank's new co-CEO Anshu Jain has voiced his support for German Chancellor Angela Merkel's austerity drive to tackle the euro zone debt crisis.
Mr Mukherjee has presented a good budget, perhaps even a very good one under the circumstances, but he has shied away from presenting a great budget.
With the creation of the state of Telangana, additions were made to ToRs of the 14th Finance Commission to make recommendations for the newly created states after the reorganisation of Andhra Pradesh.
Alas, the 'basic income' schemes that have hit the headlines in the recent past are a far cry from the genuine article in terms of coverage and fiscal implications, says Vijay Joshi.
'We get an overzealous army of tax inspectors pushing the economy too hard,' says Ajay Shah.
Could turn out below last year's budget estimate, with some improvement in revenue and spending
While the budget is positive for the equity markets, crude oil price and the global scenario will largely decide the market direction.
The party whose government presents the Interim Budget does not return to power.
India's foreign reserves continue to march to record highs, touching USD 393 billion early this month backed by strong foreign portfolio and investment flows, according to Development Bank of Singapore.
MF investors may not be able to support markets fall if selling intensifies
'The new government will have to contend with slowing economic growth, weak private investment, anaemic exports and vulnerable external imbalances, a stressed financial system, mounting fiscal pressures (including high government debt-to-GDP ratios) and an exceptionally bad employment situation,' says Shankar Acharya, former chief economic adviser to the Government of India.
Overall, the populist/ electoral elements in the budget have remained measured with the finance minister being clearly aware of a higher-than-expected rise in oil prices, less-than-planned tax revenues and the wider deficit for FY 17/18, constraining his margin of maneuver, says Claude Claude Smadja.
Though monsoon risks to overall economic growth could be limited due to small share of agriculture output in GDP, the impact may be significant because it affects the poor through inflation and income, RBI noted in its 'First Quarter Review of Monetary Policy 2012-13'.
In IT, the two-way flow of investments and intellect has been central to the growing linkage, which provides a great opportunity for both nations to improve the quality of life of their citizens, says Raman Roy.
Fitch had last upgraded India's sovereign rating from BB+ to BBB- with a stable outlook on August 1, 2006.
The extra borrowing implies Jaitley will have extra spending space in the Union Budget for FY19, the last full one before the 2019 general election
Despite the 6-month high, trade deficit has widened to a four-month high of $14.62 billion, as imports rose by 14.85 per cent during the month, reports Subhayan Chakraborty.
He said the country has witnessed a journey from indecisiveness to clarity and decisiveness.
The measures to reduce the current account deficit should have focused far more on narrowing the trade imbalance, principally through export facilitation and linked FDI, says Nitin Desai.
'For the RBI, it is also strategic to allow the rupee to over-depreciate, then come and buy the rupee, and benefit from its appreciation. Speculators who have driven the rupee too low then make losses,' says Ashima Goyal.
'We are at $2.7 trillion and 2024 is not far away.' 'The country will need to grow by 9% every year for 5 years continuously and raise the aggregate investment rate to 38% of GDP to achieve the government's target of turning India into a $5 trillion economy.' 'Given the fact that we are only growing at about 5% and our investment rates are only about 30%, it may take a number of years before we can reach that targeted level.'
'The economy will pick up in 2020 or a little later... When it picks up, will it reach 10%, 8% or still lower? It all depends on how realistic are the diagnosis and the prescriptions that follow,' says Professor K J Joseph.
The fact that the fiscal consolidation programme is on target - the fiscal reduction and the revenue deficit reduction - we are moving in the set direction, he said.
The six-member monetary policy committee voted 5:1 for the decision, with only Ravindra Dholakia voting for a 0.25 per cent reduction in rates.
Leaving behind apprehensions of a rise in interest rates and petro duty cut impacting budget numbers, the officials are now confident of keeping the fiscal deficit within the targeted 4.6 per cent of the gross domestic product.
Nearly 20 lakh jobs will be up for grabs for those having skill such as IoT, mobility solutions, telecom infrastructure, network architectures, sales among others.
'If anything, he is a fiscal hawk.' 'He has avoided fiscal profligacy completely for the past four years.' 'The fiscal deficits since 2014 are clear proof of this.' 'The point is not that it is not 3 per cent yet; it is that it is not 6, 7 or 8 per cent, which it could easily have been.' 'For this he needs to be congratulated.' 'He has recognised it no longer pays to spend other people's money to win elections,' points out T C A Srinivasa-Raghavan.
We are much better placed than in 2013 with our overall fundamentals much stronger - higher foreign exchange reserves, a more favourable growth-inflation mix and an institutional framework for targeting inflation, says B Prasanna.
With the wage bill of postal department, having around 4,84,000 employees, expected to go up by 20 per cent in the current fiscal, the postal deficit for 2009-10 is set to go up by 41 per cent to Rs 5,395 crore over 2008-09.
Spectrum auction and divestment proceeds likely to disappoint, subsidies are likely to overshoot the Budget target and there might also be some shortfall in tax collections.
'We believe that the Budget will take a step towards fiscal consolidation and the fiscal deficit target will be in the neighbourhood of 5.5 per cent as against market expectations of 6-6.5 per cent,' the bank said in its report. The market fears of a high fiscal deficit are based on the opinion that the government would continue with stimulus packages to prop up growth, it said.
The oil cartel's decision to maintain the production ceiling at its 2016 level, despite the recovery of the world economy, will ensure shortfalls in supply and high oil prices in the foreseeable future, warns Ambassador D P Srivastava.
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