New Delhi: Several important economic indicators have registered a slump, including falling value of rupee and decline in corporate earnings, painting a grim picture of the economy.
The rupee slid to a fresh low of 84.70 versus dollar on Monday (December 2), with dealers saying that the decrease in the value of rupee being on account of concerns over slowing economic growth and heightened greenback demand in the non-deliverable forwards (NDF) market, reported Business Standard.
The rupee has weakened by around 1.8 per cent in 2024.
Experts said that US President-elect Donald Trump’s tariff threat to Brics has had its impact on the currency. It is being speculated that the falling rupee may breach the 85 per dollar level.
With India’s economic growth slowing much more than expected in the third quarter, it is expected that there will be more pressure on the RBI to cut rates, reported Reuters.
Meanwhile, India’s economic growth in the July-September quarter slowed to 5.4 per cent, which is the lowest figure in seven quarters.
Decline in corporate earnings is expected to impact the government’s direct-tax receipts and fiscal position. A seven per cent year-on-year (Y-o-Y) decrease was registered in tax payments by listed companies in Q2FY25.
It is the worst figure in the last four years and the first decline in corporate tax in seven quarters.
The manufacturing sector saw a decline in November with the Purchasing Managers Index (PMI) falling to an 11-month low of 56.5, reported The New Indian Express.
