India’s consumption recovery appears uneven and fragile, as recent improvements have been driven more by lower inflation, tax relief, and credit expansion than by strong wage growth. Rural demand has benefited from easing price pressures, while urban spending remains constrained by modest income growth and rising living costs. Increasing household debt and cautious consumer sentiment further highlight the structural weakness in demand. Sustainable consumption growth will depend on broad-based increases in real wages, better employment opportunities, and stronger household financial stability rather than temporary policy stimulus.
Click to View MoreCentral Bank Digital Currency (CBDC) is a sovereign digital form of money issued by central banks to complement physical cash and existing digital payment systems. It aims to enhance payment efficiency, financial inclusion, monetary sovereignty, and cross-border transactions while offering a safer alternative to private digital currencies. However, challenges related to cybersecurity, privacy, banking stability, and interoperability necessitate a cautious, phased, and well-regulated implementation supported by strong domestic and international coordination.
Click to View MoreThe rupee’s fall past 90 reflects a strong US dollar, FPI outflows and a widening trade deficit. While it raises imported inflation and debt costs, it aids exports like IT and pharma. The RBI follows a managed float, using forex reserves to limit volatility and maintain economic stability.
Click to View MoreThe RBI’s 25 bps repo rate cut to 5.25% reflects confidence in low inflation and strong growth, aiming to boost borrowing, investment and consumption through cheaper credit. While it supports economic momentum, risks persist due to rupee weakness and uncertain external conditions, making cautious monetary calibration essential.
Click to View Morereduction in United States interest rates reshapes global capital movements and directly influences India’s financial landscape. Lower United States yields make emerging markets more attractive, potentially boosting foreign investment, easing borrowing conditions, and supporting growth through cheaper imports and improved liquidity. However, these benefits come with risks such as currency volatility, uncertain capital flows, export pressures, and inflationary spillovers. India must balance global monetary easing with domestic priorities—maintaining financial stability, strengthening structural reforms, and ensuring prudent macroeconomic management—to fully leverage opportunities while mitigating vulnerabilities.
Click to View MoreRetail inflation in India fell to a historic low of 0.25% in October 2025, primarily due to GST rate cuts, a favourable base effect, and a decline in prices of key food items such as vegetables, fruits, oils, and eggs. While food and beverage prices contracted, most other categories, including fuel, housing, and miscellaneous goods, saw higher inflation compared to last year. The decline provides short-term relief to households and businesses, stabilizes macroeconomic conditions, and supports policy measures aimed at economic growth and price stability.
Click to View MoreThe US Federal Reserve recently cut its key interest rate by 0.25%, signaling two more cuts this year to support its slowing labor market. This move impacts India by influencing capital flows, currency value, borrowing costs, and inflation. While lower global rates can boost growth and investment, India faces risks like currency volatility, imported inflation, and banking sector stress. A balanced approach with monetary policy, fiscal prudence, and structural reforms is essential to leverage opportunities while safeguarding economic stability.
Click to View MoreThe Reserve Bank of India (RBI) manages rupee depreciation through tools like selling US Dollars and adjusting interest rates, addressing factors like trade deficits and capital outflows. A weaker rupee boosts exports but exacerbates inflation and increases debt costs, crucial for India's economic stability.
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