Rate cut comes within week of Union Budget which provided biggest-ever tax break to middle class to boost consumption after economy slowed to lowest pace since pandemic.
US & Indian policy rates have seen similar trajectory. With Fed’s rate cuts, difference between interest rates in India & US may widen, leading to foreign capital inflow & stronger Rupee.
Barring a second wave, India stands poised to shrug off the deathly grip of the virus and renew its tryst with its pre-Covid growth trajectory, says RBI Governor Das.
RBI expects headline inflation to remain elevated in the second quarter of 2020-21. It also sees real GDP shrinking in the first half as well as the full year.
At ThePrint's Off the Cuff, HDFC chairman Deepak Parekh said govt should reduce stakes in state-owned banks to 51% and pursue aggressive asset monetisation & privatisation.
CPI-based inflation has remained over 6% for last 2 quarters. With NPAs also expected to rise significantly, RBI could focus on financial stability this time.
Govt sought to advertise GST rate cut on certain goods like khakhra, and commence international operations at Surat airport. EC shot down both requests.
One such website has drawn particular scrutiny for spreading fake stories that have upset not only the Indian but also foreign defence firms by falsely attributing misinformation.
Standing up to America is usually not a personal risk for a leader in India. Any suggestions of foreign pressure unites India behind who they see as leading them in that fight.
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