Author: Suril Shah

DURING APRIL-FEBURARY FY22 India’s gold imports, which have a bearing on the country’s current account deficit (CAD), surged by about 73 per cent to USD 45.1 billion during April-February this fiscal on account of higher demand, according to official data. The imports stood at USD 26.11 billion in April-February 2021.The surge in gold imports during the 11-month period contributed to the widening of the trade deficit to USD 176 billion. In February 2022, however, imports of the precious metal dipped by 11.45 per cent to USD 4.7 billion, as per the data by the commerce ministry. The surge in gold…

Market began the week with a bearish wave but appeared to be regaining its lost ground as tensions between Russia-Ukraine began to de-escalate. While the worst may seem to be over, a prolonged rise in inflation could be lurking around the corner as multiple sanctions placed on Russia have sparked an unbridled rally in commodity prices.  India, though is better equipped, is certainly not immune to these events. According to third-quarter GDP statistics, Indian industry grew at a tepid rate, mainly attributed to sluggish domestic demand.  Slower government investment and weak rural demand hampered growth, with agriculture being a key dragger…

Morgan Stanley raised retail inflation projection to 6 per cent and expects current account deficit to widen to 3 per cent of GDP. Morgan Stanley has cut India’s GDP growth forecast for FY23 by 50 basis points to 7.9% and raised retail inflation projection to 6%. The firm also expects current account deficit to widen to a 10-year high of 3% of GDP. High oil prices, trade and tighter financial conditions are expected to affect the Indian economy in FY23. As higher oil prices torpedo economic recovery worldwide, Morgan Stanley has cut India’s GDP forecast for the fiscal year beginning…

The income tax department has issued a reminder to taxpayers. Taxpayers, whose cases are under scrutiny, must complete the process by March 31, 2022. The tax department has asked taxpayers to timely comply with notices issued by it.  “Gentle reminder to taxpayers whose cases are under scrutiny, to be completed by 31.03.2022!” Income Tax India tweeted.  “Pl ensure timely compliance with notices issued by ITD calling for information/details. Failure to comply with the notice may result in Best Judgment assessment based on material on record,” the tax department tweeted.  Central Board of Direct Taxes (CBDT) issued refunds of more than Rs.…

Multiple missile hits by Russia in Lutsk in northwestern Ukraine have stopped two power plants and a motor factory on fire. Explosions caused by Russian missiles have stopped two boiler (power) plants in Lutsk in northwestern Ukraine, reported European media outlet Nexta. The fire broke out after a Russian attack on a training building outside the perimeter of the plant, according to a statement by Ukraine’s state emergency service.   It also reported a fire, presumably at a motor plant, after a series of explosions in the city. It reported that explosions were heard in the Dnipro, Rivne and Volyn regions  Nexta…

US President Joe Biden is expected to announce today that, along with the European Union and the Group of Seven countries, the US will move to revoke “most favoured nation” trade status for Russia over its invasion of Ukraine.  That is according to a source familiar with the matter who spoke on the condition of anonymity to preview the announcement. The person said each country would have to follow its own national processes.  Stripping most favoured nation status from Russia would allow the US and allies to impose tariffs on Russian imports, increasing the isolation of the Russian economy in…

Airfares are likely to fall up to 30-40% on an expected increase in the number of flights, following the government’s green light for resumption of regular international air travel from March 27, said industry executives. Global travel opens after two years of Covid-induced restrictions on travel.   Prices across the broader economy are in flux right now, with supply chain issues, inflation, and wildly vacillating stock markets leading to higher costs on everything from groceries to cars.  One area where prices haven’t been as affected: Airfare. In fact, the average cost of airline tickets, which tend to be relatively variable by…