Earlier in the day, Economic Affairs Secretary Ajay Seth said that the rate cut is unlikely to have any significant impact on foreign inflows into India.
In January 1st week, India had forex reserves worth $633 bn, indicating a fall of over $82 billion so far. Forex depletion means RBI's been selling dollars to tackle falling rupee.
India was among the most affected countries when the Federal Reserve slowed down bond purchases in 2013, known as ‘taper tantrum’, which put pressure on the rupee.
The IGST component of total import duty collections is growing faster than that from Customs duty. And states enjoy a larger share in the rapidly growing pie of IGST on imports.
India’s industrial output growth saw a 10-month low in June, with Index of Industrial Production (IIP) growing by mere 1.5% as against 1.9% in May 2025.
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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