Economic News Highlights

(November 3 November 7, 2014)

National
1. India's economy likely to grow 6.4% next year; may be a hair's breadth away from China by
2016: OECD
Dated: Nov 7, 2014
The article discussed OECDs forecast for Indias GDP growth in the short-run. It indicates OECDs
endorsement of our governments policies aimed at reviving our economy.
http://economictimes.indiatimes.com/articleshow/45061141.cms?intenttarget=no&utm_sourc
e=newsletter&utm_medium=email&utm_campaign=Dailynewsletter&utm_source=contentofint
erest&utm_medium=text&utm_campaign=cppst
2. Need to up savings rate for 7% GDP growth: HSBC
Dated: Nov 6, 2014
The article tells that a hike in the savings account is necessary to boost the GDP growth of the
country. The current quarter GDP lies at 5.7 percent but is expected to fall to 5 percent in the
next quarter. In order to bring the GDP at 7-8 percent, the savings account must expand to as
much as 35% of the GDP, from its current value of 30% of the GDP. Factors that may lead to the
expansion of the savings account include rising labour force participation and a better banking
network.
http://www.business-standard.com/article/pti-stories/nneed-to-up-savings-rate-for-seven-percent-gdp-growth-hsbc-114110600874_1.html
3. Domestic edible oil import may touch $15 billion in FY15
Dated: Nov 7, 2014
India is expected to increase its oil imports by 56% in the fiscal year15. The oil import rise is
mainly due to the fall in oilseeds production. More than half of the edible oil needs are fulfilled
by means of imports. The previous figure for the same was $9.6 billion and now India will be
importing around $15 billion worth oil. Surprisingly, despite of the rising imports, there has been
no significant build up in the oil prices around the country.
http://economictimes.indiatimes.com/news/economy/foreign-trade/domestic-edible-oil-

import-may-touch-15-billion-in-fy15/articleshow/45072649.cms
4. Long way to go before inflation eases
Dated: Nov 7, 2014
The food price index remains structural, as pointed out by RBI deputy governor HR and the
overall inflation is nowhere expected to come down to a manageable figure. The lowest figure
ever since January for the consumer price index(CPI) observed is 6.46, which was in September.
The only factors likely to bring about a change are the structural reforms by the Modi-led
government and the rupee value being stable.
http://businesstoday.intoday.in/story/rbi-deputy-governor-hr-khan-inflation-food-price-ratecut/1/212090.html
5. FIIs hike stake in HDFC to record-high of nearly 78 per cent
Dated: Nov 7, 2014
HSBC is looked upon by the FIIs as they expect a boost in the mortgage market. Twelve new FIIs
bought in the HSBC taking the number to 1,140, the major reason being its consistent stability.
Other reasons include the security, returns(10-12%) and the exposure from the pension
funds(PFs) and the PE of 20, adding credibility to the funds. Also, HSBC share prices have
advanced up to 40% from the previous value of 32% in Sensex.
http://economictimes.indiatimes.com/industry/banking/finance/finance/fiis-hike-stake-in-hdfcto-record-high-of-nearly-78-percent/articleshow/45033443.cms?intenttarget=no&utm_source=newsletter&utm_medium=emai
l&utm_campaign=Dailynewsletter

International
1. Chinese, Canadian central banks agree to 200 billion yuan currency swap
Dated: Nov 8, 2014
The central banks of China and Canada have agreed to a currency swap worth 200 billion yuan
($32.67 billion) or C$30 billion, according to a Canadian government statement issued at a
meeting of Asia Pacific nations.
http://economictimes.indiatimes.com/articleshow/45080557.cms?utm_source=contentofintere
st&utm_medium=text&utm_campaign=cppst
2. China and Pakistan ink 20 pacts, boost ties
Dated: Nov 8, 2014
China signed pacts with Pakistan amounting to an investment of about $46 billion. The deal was
struck in a meeting of Pakistan Prime Minister Nawaz Sharif with Chinese leadership on the
sidelines of the ongoing APEC summit.
http://economictimes.indiatimes.com/news/international/business/china-pakistan-ink-20pacts-boost-ties/articleshow/45079830.cms
3. China to establish $40 bln Silk Road infrastructure fund
Dated: Nov 8, 2014
Chinese premiere announced that China will contribute $40 billion to set up a Silk Route
infrastructure fund to boost connectivity across Asia, largely focusing on infrastructure,
resources and industrial and financial cooperation.
http://www.reuters.com/article/2014/11/08/china-diplomacy-idUSL4N0SY0DC20141108
4. EU cuts forecasts, Euro zone recovery delayed
Dated: Nov 5, 2014
According to European Commission, the Euro Zone is expected to need at least one more year
to reach a modest level of economic growth. According to revised forecasts, Euro Zone would
expand by 0.8 per cent this year, 1.1 per cent next year and by 1.7 per cent in 2016 - a level the

Commission said six months ago would be achieved next year. The delay in the upturn was due
to drag on the economy from France and Italy.
http://www.business-standard.com/article/international/eu-cuts-forecasts-euro-zone-recoverydelayed-114110500020_1.html
http://www.thehindu.com/business/Economy/european-union-cuts-growth-forecasts-as-bigeconomies-falter/article6563980.ece
5. IMF, US encourage ECB, Japan monetary stimulus
Dated: Nov 7, 2014
IMF and the US have termed the global economic recovery as fragile, and have urged the
governments to encourage economic growth in their countries. They have urged ECB and Bank
of Japan to provide monetary stimulus to their economies and even adopt unconventional
monetary policies to boost consumption and growth in their respective economies.
http://economictimes.indiatimes.com/articleshow/45074826.cms?utm_source=contentofintere
st&utm_medium=text&utm_campaign=cppst
6. India, Russia agree on negotiations for FTA
Dated: Nov 6, 2014
India and Russia have, for the first time, agreed on negotiations for an FTA. The agreement
marks the first FTA negotiations initiated by the NDA government, and discussed by visiting
Russian Deputy Prime Minister Rogozin and Indian External Affairs Minister Sushma Swaraj
during the 20th session of India-Russia Inter-Governmental Commission (IRIGC) in New Delhi on
Wednesday.
http://www.thehindu.com/business/Economy/india-russia-agree-on-negotiations-forfta/article6568304.ece
7. Russia warns of 'WTO death' if no trade solution at G20
Dated: Nov 7, 2014
Russia issued a statement as a warning of failure of WTO in the face of long-standing
disagreement between developed and developing countries in the run-up to the upcoming G20
Summit to be held in Australia during Nov 1516, 2014. The stand-off is largely around
allocation of carbon emissions targets for the various countries in the G20 block.
http://economictimes.indiatimes.com/articleshow/45074501.cms?utm_source=contentofintere
st&utm_medium=text&utm_campaign=cppst

Submitted by:
Kanav Ayri (M031-14)
Pranav Patil (M043-14)
Amit Manohar (M014-14)
Antarix Chaudhary (M019-14)
Amisha Chawla (M013-14)
Ajmeera Srinivas (M090-13)