Business, Economy & Banking Current Affairs - 2019

Business, Economy and Banking in Current Affairs 2019 with latest news and current affairs in Agriculture, Industry, Banking, Capital Markets, Import and Export and Government schemes in commercial sector.

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Fitch slashed India’s growth projection

Global rating agency Fitch has scaled down its projections on India’s growth to 4.8% for the current fiscal from the earlier estimate of 5.7% made in June, 2013.

Why did Fitch scaled down India’s growth prospects?

The following are the key reasons behind the cut in growth projections:

  • Weak Indian currency against dollar
  • Expanding Current Account Deficit (CAD) on account of rising crude prices and falling rupee
  • Weak demand

RBI confident of financing CAD without drawing much from reserves

RBI Governor Raghuram Rajan evinced confidence that the country would be able to finance the Current Account Deficit (CAD) without drawing down much from the forex reserves.

RBI is of the view that CAD could be brought down to $70 billion or even below that. In fiscal 2012-13, CAD stood at a historic high of 4.8%, or $88 billion, of the GDP. The government has set a target of 3.7% CAD, or $70 billion, this fiscal.

The efforts of the RBI through FCNR-B and swap facility have yielded a total of nearly $1.4 billion. The market has also recuperated considerably after the US federal bank postponed the tapering of stimulus. Mr. Rajan stressed on improving country’s economic parameters regardless of the actions that the U.S. took.