See FY26 GDP growth near 6.8% on income tax cut, RBI action, says CEA Nageswaran

The government's proposal to cut income tax rates and monetary policy easing by the Reserve Bank of India together are likely to lift India's GDP growth in 2025-26 (Apr-Mar) closer to the upper band of the 6.3-6.8% range projected in the Economic Survey, Chief Economic Adviser to the Government V. Anantha Nageswaran said.Register to read

Repo rate cut seen again Apr, 75 bps of easing seen in total

The Reserve Bank of India's Monetary Policy Committee is expected to cut the repo rate again in April, after kicking off the expansionary cycle on Friday. In a poll by Informist, all but one of the 16 economists said the committee would cut the policy rate by another 25 basis points to 6.00% at its Apr. 7-9 meeting.Register to read

High base to drag down Dec IIP growth to 3.9% from 5.2% Nov

India's industrial output likely rose 3.9% on year in December after posting an increase of 5.2% in November, with an unfavourable base effect seen as the primary drag, according to a poll of 13 economists by Informist. Industrial output, as measured by the Index of Industrial Production, had increased 4.4% in December 2023.Register to read

Mkt shrugs off 25 bps rate cut; wants more easing, earnings growth

MUMBAI – The Reserve Bank of India Friday delivered its first interest rate cut in nearly five years and also raised hope of more to follow. However, the only positive the equity market saw in this was that this was the beginning of a deeper rate cut cycle that is needed to spur growth. Benchmark indices ended slightly lower, partly as the rate cut was already factored in by the market, but mainly because even with more rate cuts, growth will take a while to pick up. Indeed, the RBI cut its own Apr-Jun growth forecast to 6.7% from 6.9% and the forecast for Jul-Sept to 7.0% from 7.3%. It estimates GDP will grow at 6.7% in 2025-26 (Apr-Mar), slightly better than the 6.4% growth now expected in FY25, but significantly lower than the 8.2% growth in FY24.Register to read

Sanjay Malhotra's first MPC statement suggests winds of change at RBI

Sanjay Malhotra's first monetary policy statement as the Reserve Bank of India governor on Friday has only confirmed what many had hoped for when he took over in December – sweeping changes are afoot at Mint Street on monetary policy, foreign exchange management and financial sector regulations.Register to read