RBI retained its projection of 6.5% growth, but highlighted global uncertainty, particularly due to renewed tariffs from July & volatility in commodity prices as risks to growth outlook.
The Economic Survey, which was recently presented in Parliament, also estimated headline inflation for FY26 at 4.2%, while for the current fiscal, it is expected to be around 4.8%.
Both the government and the RBI are currently so focused on their respective targets that they are losing sight of the fact that some flexibility might actually be a good thing.
A big source of uncertainty will be trade after Trump assumes office. However, within India, rural demand is likely to sustain momentum & inflation is less likely to be a big problem.
RBI has kept repo rate high & unchanged at 6.5% since February 2023 in an attempt to slow credit growth & thereby lower inflation. This has not come to pass, ThePrint’s analysis shows.
With Sanjay Malhotra at the helm, RBI could shift towards a more dovish monetary policy, but the conventional policy response of rate cuts will not be a given with rising pressure on rupee.
The Modi govt’s priorities are chillingly lopsided. Instead of stabilising the economy, Modi and his cohorts are busy spurring religious conflicts to win elections.
Investors are pricing in lower taxes and new trade tariffs under the Trump administration, measures seen as inflationary which could prompt Fed to curb easing of interest rates.
India’s policymakers need to ensure that labourers, and milk and newspaper delivery workers, do not have to sacrifice food just to keep a roof over their heads.
In the latest budget, the FDI limit was increased to 100 percent, but most foreign companies are not buying such large stakes in the Indian insurance sector.
Modi government had also made numerous efforts to establish peace with Pakistan but has now adopted a different path, militarily, to establish peace, adds defence minister.
As Narendra Modi becomes India’s second-longest consecutively serving Prime Minister, we look at how he compares with Indira Gandhi across four key dimensions.
COMMENTS