External debt in safe limits, export slowdown to continue

GN Bureau | February 26, 2016


#Economic Survey   #Budget Session   #Arun Jaitely  

The economic survey 2015-16 shows that the prudent external debt policy of the government has resulted in external debt remaining within safe and comfortable limits and in containing its rise. India’s balance of payments (BoP) position remained comfortable during the first half of 2015-16.  Low levels of current account deficit coupled with moderate rise in capital inflows resulted in rise in foreign exchange reserves of $10.6 billion in first half of 2015-16.  India’s foreign exchange reserves at $351.5 billion as on February 5, 2016 mainly comprised foreign currency assets equal to $328.4 billion (93.4% of the total) and gold at $17.7 billion. Between April 2015 and January 2016, the average exchange rate of the rupee depreciated to Rs 65.04 per US dollar as compared to Rs. 60.92 per US dollar in April 2014- January 2015.

The growth in India’s exports declined year on year by 17.6% and they stood at $217.7 billion. The imports have also declined by 15.5% in the current financial year to $324.5 billion US dollars.  Lower levels of Petroleum Oil Lubricants (POL) imports were the main reason for the decline in total imports this year so far.  As a result, the trade deficit decreased to $106.8 billion as compared to $119.6 billion in the corresponding period of 2014-15.  The economic survey further says that while exports slowdown may continue for a while before picking up in the next fiscal, continuance of low commodity prices globally augurs well for sustaining low trade and current account deficit.
 

Comments

 

Other News

Elections 2024: Why Mumbai and Maharashtra verdict is crucial

In the ongoing Lok Sabha elections, Maharashtra with 48 Lok Sabha seats is of crucial importance for the final outcome. In the 2019 election, the Shiv Sena-BJP alliance won 42 seats including six seats in Mumbai, as well as one each in Thane, Kalyan, Bhiwandi, and Palghar, which fall in the Mumbai Metropol

Jammu-Kashmir makes indelible mark on electoral history

In a massive stride for India’s electoral polity, Jammu and Kashmir has registered its highest poll participation in the last 35 years in the General Elections of 2024. The Combined Voter Turnout (VTR) at the polling stations for the entire union territory, which has 5 Lok Sabha seats

New study tracks heat wave; exposes dangerous trends in big cities

An unprecedented heat wave has been enveloping Indian cities, worsening the urban heat island effect, this summer. A new analysis by Centre for Science and Environment (CSE) says there are far deeper and longer term evidences on the nature of this changing trend that is impacting the biggest cities of the

Phase 6: Voter turnout 59.06% at 7:45 PM

Polling in the sixth phase of General Elections 2024 which commenced across 58 PCs recorded an approximate voter turnout of 59.06% as of 7:45 pm Saturday. In spite of hot weather in certain parts of the country, voters were undeterred in their enthusiasm as they were seen queuing up patient

Banks not adhering to RBI guidelines, finds study

Banks across India are levying inconsistent service charges on basic savings accounts. A study, “Benchmarking Reasonableness of Service Charges by Banks in India”, uncovers and exposes inconsistencies in adherence to RBI mandates by banks. It finds some banks impose charges exceeding reasonable

“Mumbai Infra boom similar to that of Manhattan in 19th C”

Mumbai’s ongoing infrastructure boom – with a new coastal road, Atal Setu, metro lines and much more – creating transport corridors – is comparable to that of Manhattan in New York during 1811-1870, according to BMC commissioner Bhushan Gagrani. The iconic projects being implemented

Visionary Talk: Amitabh Gupta, Pune Police Commissioner with Kailashnath Adhikari, MD, Governance Now


Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter