News Bites

By | December 20, 2015

News Bites
1. India Will Have Fastest Growth in 2016-17
A recent United Nations report reveals that India will have India will remain the world’s fastest growing economy with a projected growth of 7.3% in 2016 and 7.5% in 2017.The report further estimates that the global economy will grow by 2.9% in 2016 and 3.2% in 2017.

2. Retail inflation rises to 5.41% in November
The Consumer Price Index (CPI)-based retail inflation rose for the fourth month to 5.41% in November compared to 5% in October. This was due to the rise in food prices. The Reserve Bank of India has said that inflation is slated to rise further until December before stabilizing.

3. Domestic Mutual Funds Buy Rs 69k crore worth of Shares
According to data released by SEBI, domestic Mutual Fund houses have invested approximately Rs. 68,924 crore in equity markets in 2015, compared to Rs. 23,842 crore invested in 2014.

4. India Inc. Gets Rs. 6.3 lakh crore from Markets in 2015
India Inc. has garnered Rs. 6.3 lakh crore through the capital markets in 2015 with bonds emerging as a preferred investment option among investors. Around 5 lakh crore was raised in capital from debt securities while equity markets brought in around Rs. 1.3 lakh crore. Domestic markets raked in approximately Rs. 5.75 lakh crore and Rs. 58, 9000 crore was raised from overseas.

5. India Expected to Grow at 7.9% in 2016-2017
Investment bank Goldman Sachs recently forecasted India’s GDP growth at 7.9% for the next fiscal in 2016-2017. The country’s growth will be driven by a surge in domestic demand and increased spending on infrastructure.

6. The Government’s Indirect Tax Revenue Sees 24.3% Increase in April- November
According to a Finance Ministry report, the government’s indirect tax revenues rose by 34.3% year-on-year to Rs. 4.38 lakh crore in the first eight months of the current fiscal. While collections from central excise went up by 67.1% in the period between April-November to Rs. 1.70 lakh crore, service tax collections grew 25% to Rs. 1.27 lakh crore.

7. World Bank Grants $1.5 Bn Loan for Swachh Bharat
The World Bank has approved a loan of $1.5 Bn to support the Indian government’s Swachh Bharat initiative, to help achieve its goal of improving sanitation across India by 2019.

8. PAN to be Mandatory for Opening Bank Accounts
Shaktikanta Das, the Economic Affairs Secretary has recently announced that from 1 January 2016, declaring PAN details will be made compulsory for opening all bank accounts, except those under the Pradhan Mantri Dhan Yojna. PAN will also be compulsory for buying foreign travel tickets worth more than Rs. 50,000 and purchasing immovable property over Rs. 10 lakhs.

9. US Federal Reserve Hikes Rates
The United States Federal Reserve recently hiked the federal funds rate by 25 base points to a range of 0.25-0.50%. This is the first rate hike since 2006 and was done in an effort to tighten US monetary policy.

10. Private Equity Investments in India Hit Record $17.5 Bn
According to recent reports from PwC, private equity investments in India in 2015 (as on December 14) have hit a high of $1.5 Bn. This is a growth of 34% over last year’s $13 Bn. The e-commerce sector led investments with deals worth $5.3 Bn.

11. Early Implementation of GST Expected to Create More Jobs
The International Monetary Fund Chief Christine Lagarde has suggested that an early implementation of the Goods and Services Tax in India would help to create jobs and raise revenues for health and education in the country.

12. Wilbur Ross on Mutual Funds
The asset investor, Wilbur Ross reflects that the markets are filled with options for cheap refinancing. This is apparently a result of the Federal Reserve’s hike in interest rates and could lead to a meltdown in the high yield market.

13. PAN to be Compulsory for Transactions over Rs. 2 lakhs
The Finance Minister, Arun Jaitley has recently revealed that PAN details will be mandatory for transactions above Rs. 2 lakhs, irrespective of the mode of payment. This is expected to curb the domestic generation of black money in India.

14. RBI May Lower Repo Rate by 25-50 Basis Points in 2016
While the RBI is expected to carry on with an accommodative monetary policy in 2016 despite the US Federal Reserve’s rate hike, a recent Economic Times poll reveals that bank executives and economists are preparing for the RBI to lower the repo rate by at least 25 basis points next year.

15. RBI Links Lending Rates to Loan Tenor
The Reserve Bank of India has recently released new directives on how banks should calculate lending rates. This is aimed at lowering borrowing costs just when lenders are hesitant to borrow. The new method of calculation of the lending rates, the Marginal Cost of Funds based Lending Rate (MCLR) will come into effect from April 1, 2016.

All information including news articles and blogs published on this website are strictly for general information purpose only. BankBazaar does not provide any warranty about the authenticity and accuracy of such information. BankBazaar will not be held responsible for any loss and/or damage that arises or is incurred by use of such information. Rates and offers as may be applicable at the time of applying for a product may vary from that mentioned above. Please visit for the latest rates/offers.

Leave a Reply

Your email address will not be published. Required fields are marked *