India at a glance: Corporate earnings (From Page 16 onwards)
Key Highlights
- The macro backdrop is challenging with weakening fundamentals confronting risks of twin deficits and policy stasis.
- The quarterly GDP growth has come down to nine-year low and is further slowing down to 5% level.
- Inflation though have come down from their peak level, still hovers around 7% level with core inflation somewhat above 5%.
- It would be difficult to achieve any meaningful fiscal correction in FY13 due to rising oil, food, fertilizer subsidy and on account of shortfall from spectrum sale and disinvestment.
- RBI pursued tight money in view of still high inflation and fiscal deficit. However, slowing bank credit has eased pressures on liquidity.
- On the external front, trade and current account deficit were record an unsustainably high in FY12. However, decline in gold imports and higher portfolio flows has stabilized the INR somewhat.
- Slowing policy making have come in for critical focus with government still touting booming FDI as sign of continued confidence in India. However, by its own reckoning government needs to move forward on critical reform such as DTC, GST, FDI, infrastructure and good governance.
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