To stabilize the rupee and bridge the balance of payments deficit, India has eliminated capital gains and withholding taxes on FII investments in government bonds via the Income Tax Amendment Ordinance 2026, boosting foreign debt inflows and lowering imported inflation.
Click to View MoreThe era of cheap global money is ending, triggering foreign capital outflows and Rupee depreciation. However, India's robust macroeconomic fundamentals, domestic market reliance, and recent inclusion in the JPMorgan global bond index provide vital resilience against global liquidity shocks.
Click to View MoreA Goldilocks Economy describes an ideal state where growth is robust enough to prevent recession but not so fast that it triggers high inflation. This "just right" balance allows for stable interest rates and sustainable long-term economic expansion.
Click to View MoreAmid rising geopolitical tensions and crude oil prices, India’s economy faces pressure with a record rupee fall. The RBI is injecting liquidity via OMOs to prevent a cash crunch, support government borrowing, and manage risks from a widening current account deficit, inflation, and slower GDP growth.
Click to View MoreThe Reserve Bank of India kept the repo rate unchanged at 5.25% and retained a neutral stance, citing a favourable macroeconomic environment. With inflation projected at 2.1% for FY26 and GDP growth expected at 7.4%, the central bank opted for a cautious pause to allow the impact of earlier rate cuts to transmit fully. The decision ensures stability in borrowing costs and EMIs while preserving policy flexibility to respond to risks such as global uncertainty, crude oil volatility, and potential inflationary pressures.
Click to View MoreRetail inflation in India fell to a 99-month low of 1.54% in September 2025, mainly due to falling food and fuel prices. This marks the lowest level since 2017 and is below the RBI’s 2–6% comfort range. While consumers benefit from lower prices and improved purchasing power, persistently low inflation may signal weak demand and affect farmers’ income.
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