The Reserve Bank of India (RBI) has proposed stricter liquidity coverage ratio (LCR) norms to mitigate the risk of bank runs, particularly those triggered by digital banking channels. This move aims to bolster the banking system’s resilience against sudden deposit withdrawals. LCR mandates banks to maintain a certain proportion of high-quality liquid assets (HQLA) to …
The Petroleum and Natural Gas Regulatory Board (PNGRB) has announced a significant revision in tariffs for petroleum product pipelines, effective August 1, 2024. The new regulations aim to ensure a reasonable return for pipeline operators while considering inflationary pressures. For pipelines commissioned before December 2010, the tariff will be indexed to 75% of the basic …
The Government of India is strategically navigating a complex energy landscape, balancing the need for reliable power generation with its ambitious renewable energy targets. To meet the projected electricity demand of 283 GW by 2031-32, the government has outlined plans to augment coal-based capacity by an additional 80 GW, requiring a substantial investment of ₹6,67,200 …
The Indian automotive component industry demonstrated robust growth in the fiscal year ending March 31, 2024, with a turnover of ₹6.14 lakh crore, marking a 9.8% increase over the previous year. This growth was fueled by a combination of factors, including steady vehicle production, a thriving aftermarket, and increased exports. Domestically, component supply to original …
The Union Budget 2024, presented on July 23, 2024, has had a profound impact on foreign institutional investors (FIIs) in the Indian equity markets. Known for their significant influence on market dynamics, FIIs were initially aggressive buyers throughout the first half of July. However, the post-budget period has seen a sharp reversal, leading to a …
The Securities and Exchange Board of India (SEBI) is exploring the introduction of a new asset class targeted towards investors with higher risk tolerance and larger investible amounts. This initiative aims to create a regulated investment option that falls between traditional mutual funds and portfolio management services (PMS). Rationale Behind the New Asset Class Bridging …
Union Railway Minister Ashwini Vaishnaw announced a substantial budget allocation of ₹14,183.69 crore for the Northeast Frontier Railway (NFR) in the FY 2024-25 Union Budget. This represents a five-fold increase compared to the average allocation during the 2009-14 period, underscoring the government’s commitment to developing the region’s railway infrastructure. The overall railway budget has witnessed …
The Indian government signalled its continued focus on bolstering the nation’s power sector by approving a nearly 14% increase in capital investment for eight state-owned power companies. Announced in the Union Budget 2024 presented on Tuesday, this move aligns with the figures outlined in the interim budget earlier in 2024. Strategic Investment Breakdown Total Allocation: …
Embracing the Prime Minister’s vision of “Working with the nation as a whole,” the Ministry of Coal is spearheading a collaborative effort to ensure a stable and affordable coal supply for India’s economic engine. Working alongside the Ministries of Railways and Power, along with other stakeholders, the initiative prioritises coal delivery at set prices for …
In recent years, India has demonstrated a concerted effort to manage its fiscal deficit, a crucial indicator of economic health. The fiscal deficit, which measures the shortfall between the government’s revenue and expenditure, has seen significant fluctuations, particularly influenced by the COVID-19 pandemic. From March 2014 to March 2019, India’s fiscal deficit as a percentage …
