(Current Affairs For SSC Exams) Economic | July : 2013

Economic & Energy : July-2013

Rupee, markets draw cold comfort from new FDI rules

India's relaxation of foreign investment rules, aimed at drawing funds needed to turn around slowing economic growth and support a crumbling rupee, barely lifted markets on Wednesday due to doubts whether long-term inflows would materialise anytime soon.The long-pending move to increase the foreign direct investment (FDI) cap in insurance from 26 to 49 percent, for example, still needs approval from parliament, where a bill has been stuck for months.

Bernanke: Fed will not raise rates in forseeable future

Federal Reserve Chairman Ben Bernanke reiterated on Wednesday that the Fed is nowhere close to raising interest rates, assuring markets that the US easy money tap would not soon dry up.

With the economy still facing risks, especially from government spending cuts, Bernanke told a Congressional panel that the Fed was still planning to trim its quantitative easing stimulus, if growth continues at a steady pace.

PM assures industry on economy, says critics focussing on 1 bad yr

Prime Minister Manmohan Singh on Friday assured the industry that government is taking action to improve the economy. He said India is committed to bringing its current account deficit under control and reducing demand for gold and petroleum products

Highlights of PM's speech

  • Poverty declined by 2% during 2004-05 and 2011-12: PM
  • New bank licenses will be awarded soon: PM
  • Economy to grow at lower than previously expected 6.5% in FY14, says PM
  • Impact of initiatives taken by the government will be felt in the second half of the current fiscal, says PM
  • Major railway projects and industrial corridors are being considered, says PM
  • Basic fundamentals of economy are sound and stable, says PM
  • Infrastructure growth is critical for medium term prospects, says PM
  • We need to bring current account deficit down to 2.5% of our GDP, but cannot be done in a year, says PM
  • We need to reduce import of gold and demand for petroleum products, says Prime Minister
  • Good news is that we have controlled the current account deficit, says Manmohan Singh
  • RBI has done its bit to stabilise markets, says Manmohan Singh
  • Most immediate cause of worry is volatility in foreign exchange market, says Manmohan Singh
  • Our country is going through a difficult period, says PM Manmohan Singh at ASSOCHAM

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