"...first estimate of kharif crop is significantly above the first estimate of last year. I think if we see some pick-up in exports...core sector is improving in performance. We would hope we would reach that range of 5- 5.5%," he said. India's economic growth rate slipped to a decade low of 5% in 2012-13 and declined to 4.4% in the first quarter (April-June) of the current financial yea r. The ADB on October 2 lowered its growth projection for India in the current fiscal to 4.7% from an earlier estimate of 6%. It said the country's economy has been under pressure with the recent depreciation in the rupee and capital outflows adding to structural constraints. The Prime Minister's Economic Advisory Council (PMEAC) scaled down its growth forecast for the current fiscal to 5.3% from 6.4% earlier.
Referring to the finance ministry's decision to infuse additional funds in PSU banks to enable them to provide cheaper auto and consumer goods loans, Rajan said the scheme is still being worked out. "I just want to emphasize that discussion is taking place on what can be done. Something will be announced as and when the scheme will be put together," he said. The decision to infuse additional capital in PSU b anks, over and above the Rs 14,000 crore provided in the budget, was announced after a meeting between Rajan, finance minister P Chidambaram and Economic Affairs Secretary Arvind Mayaram.
"This (capital infusion) amount will be enhanced sufficiently. The additional amount of capital will be provided to banks to enable them to lend to borrowers in selected sectors such as two-wheelers and consumer durables at lower rates in order to stimulate demand," a Finance Ministry statement had said.RBI Deputy Governor H R Khan told reporters the central bank would carry out open market operations to infuse funds into the system and ease liquidity. The RBI will inject as much as Rs 10,000 crore on October 7 by purchasing government securities, it said on September 30.
Replying to questions on initiatives taken by the RBI to combat the rupee depreciation, Rajan said, "We have got $5.6 billion through swap arrangements" till date.
Soon after taking over as RBI Governor on September 4, Rajan announced the ope ning of a swap window facility to encourage banks to lure NRI funds.
Under the facility, banks are permitted to swap fresh FCNR(B) dollar funds, mobilised for a minimum tenor of three years, at a fixed rate of 3.5 per cent per annum for the tenor of the deposit.
The RBI has set up a three-member committee with former governor Bimal Jalan as chairman to scrutinize applications for new bank licences. "The panel is expected to make its recommendations by January 2014," Rajan said.
RBI has received 26 applicants from the public and private sector for bank licences, which includes Tata Sons. "Only after the recommendation of the committee is submitted, would corporate sector be allowed in banking," Rajan said.
Asked about the report on backwardness of states by a panel he headed, the governor said, "The committee looked at a number of issues to determine underdevelopment...we picked some arbitrary cut-offs. The bottom 10 states we defined as 'least develop ed' and higher 10 states we defined as 'developed'." However, he added, "it does not mean that the higher 10 states are rich states and it also does not mean that the lower 10 states are very poor states."
via Business - Google News http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNH7fNLXtDMq8yWqBLSxHIei2sl49g&url=http://timesofindia.indiatimes.com/business/india-business/Growth-will-rise-to-5-5-in-FY14-on-farm-output-RBI/articleshow/23543781.cms
Put the internet to work for you.
0 comments:
Post a Comment