Top headlines: Nomura on Indian economy in 2021, govt says no change in MSP

At 9.9% GDP growth, India could be fastest-growing Asian economy in 2021

India could well be the fastest-growing Asian economy in calendar year 2021 (CY21) if Nomura’s forecasts are to be believed. The foreign research and brokerage house expects the Indian economy – as measured by gross domestic product (GDP) – to grow at 9.9 per cent in 2021, eclipsing China (2021 GDP growth pegged at 9 per cent) and Singapore (at 7.5 per cent) during this period. Nomura has turned positive on India's cyclical outlook for 2021, and believes the country is on the cusp of a cyclical recovery. The change in stance comes after nearly two years (end-2018), when it had turned negative on India’s growth. Read more...

Govt sends written proposals to farmers, says no change in MSP for crops

The minimum support price for certain agriculture produce will not end with recently enacted reforms, the government said in a written proposal sent to farmers on Wednesday. The proposal was sent to farm leaders protesting three recently enacted laws liberalising India’s agriculture markets, listing written amendments that the government intends to carry out. NDTV reported the Electricity (Amendment) Bill 2020, which farmers said goes against them, will not be introduced, according to the government proposal. The government had earlier argued that the laws are meant to monitor power distributors. Read more...

Electricity costs to fall sharply thanks to RE boom, predicts Gautam Adani

Thanks to renewable power boom, the marginal cost of electricity will continue to drop sharply and India will emerge as the least expensive producer of renewable energy, Gautam Adani, Chairman of Adani group said today. Speaking at the TiE global conference, Adani said that as renewable power sources will always be free, there is no limit to how many electrons a power producer will be able to pull out from a square inch of silicon. Read more...

Centre considers easing RBI's inflation target to help growth: Report

India’s government is considering recommending a looser inflation target for the central bank, allowing it to focus more on economic growth despite price pressures, according to people familiar with the matter. A consumer-price inflation band tracked by the Reserve Bank of India may be relaxed further from the current 2%-6% range, said the people, who asked not to be identified citing rules. The government still needs to hold consultations with the central bank before finalizing a new framework sometime next year. Read more...

S&P Global Ratings revises Tata Steel outlook to stable on earnings rebound

S&P Global Ratings has revised outlook for Tata Steel to stable on the expectation that the company’s earnings would strengthen over the next 18 months and its key financial metrics would improve to levels appropriate for the current rating. The stable outlook also assumes no major growth projects or asset divestments over the period, S&P Global Ratings said in its report today. Read more...