The Business Blog
Read biographyThe Business Blog is a daily business blog anchored by Firstpost senior editors. It will offer quick comments and insights into major business news developments from the pink press.
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Hawks opposed 3 May repo cut, but Subbarao took middle path
So what went on behind the scenes before Reserve Bank of India (RBI) Governor Duvvuri Subbarao announced the monetary policy for 2013-14 on 3 May? A meeting of the Technical Advisory Committee (TAC) that met a week before the policy seems to have been vertically split between those who wanted the #CRR #D. Subbarao #Monetary policy #PolicyWatch #RBI #TAC Meeting
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GDP estimates: Why it’s now looking worse than astrology
One would have thought the government’s stats guys would believe their own numbers. But with Pronab Sen, Chairman of the National Statistics Commission, you can’t be sure. Thus, even while the Central Statistics Office (CSO) said in its advance estimates that GDP growth for 2012-13 would be 5 percent, Sen thinks #C Rangarajan #CEO #Crystal Ball #GDP #GDP Projections #Montek Singh Ahluwalia #P. Chidambaram #Pronab Sen
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Why the death of inflation is vastly exaggerated
R Jagannathan How good is the good news on inflation? Wholesale price inflation (WPI) for April 2013 is below 5 percent (4.9 percent), and consumer price inflation (CPI) below double-digits. Both numbers are raising hopes among finance ministry officials. They now believe that Reserve Bank of India (RBI) Governor D Subbarao should #CPI #Economy #Inflation #RBI #ToWhatEffect #WPI
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Results can wait: SBI chief wants to be with Sonia
R Jagannathan What is the main job of the State Bank of India’s Chairman? To ensure that his bank gives all its stakeholders the biggest bang for the buck, or to be seen with his political bosses? Pratip Chaudhuri, SBI Chairman, apparently thinks the latter isn’t unimportant. In the past, he has been #2012-13 Results #P. Chidambaram #Pratip Chaudhuri #SBI Board Meeting #Sonia Gandhi #What Next
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One cheer and 5 messages in the March IIP revival
By R Jagannathan The 2.5 percent growth in the Index of Industrial Production (IIP) in March – a huge reversal from the negative -2.8 percent growth of March 2012 – shows that the economy is probably turning around. This is the first real green shoot that is noteworthy. There are five interesting #Green Shoots #Growth Story #IIP #March IIP
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Is finmin an Honest Broker when it comes to advising EPFO?
By R Jagannathan Would you advice your best fund to invest his retirement money in a loss-making airline? Even if the airline in question happens to be called Air India? Probably not. But this is what the government convinced the Employees Provident Fund Organisation (EPFO), every salaryperson’s retirement fund manager, to do #air india #Disinvestment #Dumb Money #EPFO #LIC #Personal finance
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Why Cong needs a meltdown in commodities before 2014
By R Jagannathan Is the Indian economy about to get a largely undeserved leg up from falling commodity prices? The UPA will certainly be hoping so. If you were to ask Ruchir Sharma, Emerging Markets Head at Morgan Stanley Investment Management and author of the best-seller Breakout Nations, the answer is yes. Even #Chidambaram #commodities #Crude #Elections 2014 #Gold #Ruchir Sharma #UPA
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FM bends over backwards to appease rich farmers’ lobby
For every one step forward on reforms, there is one step backward for the UPA government. This applies even for a reformist Finance Minister like P Chidambaram. Chidambaram’s speech yesterday during the passing of the Finance Bill in the Lok Sabha gave us ample evidence of how much he is willing #Budget2013-14 #Business #Chidambaram #Economics #Reforms #Veerappa Moily #Wealth tax #WhyNow
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Huff, puff, India will finally be a $2 trillion economy this year
By R Jagannathan After missing the bus for two consecutive years, thanks to an accelerating slowdown, India will probably keep its tryst with a $2 trillion economy this year. According to the Prime Minister’s Economic Advisory Council (PMEAC) headed by C Rangarajan, the Indian economy’s GDP will hit $2,126 billion (i.e. #C Rangarajan #Crystal Ball #Indian Economy #PMEAC
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LPG cash subsidy: How oil cos will pay for UPA re-election
By R Jagannathan That every action of the UPA government is now focused on winning the next election is becoming clearer by the day. Last week, Finance Minister P Chidambaram announced that LPG (cooking gas) subsidies will be shifted to the direct cash transfers scheme – where the subsidy will be #Cash transfers #Cash-for-votes #Direct Benefits Transfer #LPG #LPG Subsidies