Inflation has been rising steeply, as it peaked at 5% in June, especially in the backdrop of a weak rupee and higher oil prices, India’s primary import commodity.
The reserves, however, are sufficient enough to cover for the next nine months of import requirements, and policy makers are not worrying too much as of now.
HSBC and Nomura analysts say the rate hike bolsters the RBI’s credentials on the inflation-fighting front, which will have a rub-off effect on the rupee.
'It would be reasonable for RBI to maintain a steady pause as the inability of banks to extend credit amid mounting bad loans is a risk to growth this year', said Kumar.
India’s foreign policy today is driven less by Western alignment or global liberalism and more by domestic political imperatives — economic, ideological, and electoral.
Electronics—specifically smartphones—& energy & pharma products make up 30% of Indian exports to US. 25% tariff on India came into effect Thursday, extra 25% to kick in by August-end.
COMMENTS