Business

Drop in Inflation Opens Doors for Increased GDP Growth

Published

9 months ago

March 15, 2025

The recent drop in retail inflation below the RBI’s target of 4 percent is anticipated to facilitate a boost in GDP growth. This decline offers the central bank more latitude to lower interest rates and enhance liquidity, aiming to stimulate economic activity and generate additional employment opportunities.

A report by Moody’s suggests that monetary easing, alongside increased government capital expenditure and tax reductions for the middle class, will play a pivotal role in accelerating India’s growth trajectory. The report forecasts that India’s GDP growth will surpass 6.5 percent by 2025-26.

Furthermore, it indicates that after a temporary slowdown expected in mid-2024, India’s economy is likely to pick up pace and achieve one of the fastest growth rates among major global economies.

Bank of Baroda economist Dipanwita Mazumdar remarked, “Given the current inflation figures, we anticipate that CPI will fall below the RBI’s target in Q4, creating additional policy flexibility for the RBI to ease measures that support growth. We project CPI will average 4.6 percent in FY25, with Q4 potentially dropping to 3.8 percent.” This forecast is more optimistic than the RBI’s estimate of 4.4 percent for the fourth quarter.

Similarly, a Crisil report predicts that India’s GDP growth will stabilize at 6.5 percent in fiscal 2026. In addition to budgetary support, growth is expected to be bolstered by the RBI’s interest rate cuts, lower crude oil prices, and a favorable monsoon season.

The report elaborates, “In the upcoming months, we foresee food inflation remaining subdued due to robust crop yields, favorable global prices, and a high base effect from fiscal 2025. Meanwhile, non-food inflation might experience a slight rise due to a low base and the effects of a weakening rupee. In fiscal 2026, we expect average headline inflation to be 4.4 percent, down from an estimated 4.7 percent in fiscal 2025, largely driven by softer food prices.”

Last month, RBI Governor Sanjay Malhotra announced a 25 basis point reduction in the policy rate, lowering it from 6.5 percent to 6.25 percent, as part of the monetary policy review aimed at stimulating growth amidst global uncertainties. He indicated that inflation has dipped and is projected to continue moderating, aligning gradually with the RBI’s 4 percent target.

The monetary policy decision aims to strike a balance between curbing inflation and fostering growth in a decelerating economy. The Monetary Policy Committee (MPC) has also unanimously opted to maintain a neutral stance, focusing on inflation while simultaneously supporting growth, offering the flexibility to adapt to the changing macroeconomic landscape.

With inflation consistently declining in recent months, reaching a 7-month low of 3.6 percent in February, the RBI is expected to face less pressure on the price front, allowing for further monetary easing to support growth.

Business

Egg Prices Rise in Bengaluru as New Year Nears

Published

10 hours ago

December 9, 2025

Namma Kudla

Egg prices in Bengaluru have increased sharply. The rate, which was ₹5 per egg a month ago, has now touched ₹7. The city is also facing a shortage in supply. Traders say that demand for eggs rises in December due to Christmas, New Year celebrations, and higher non-vegetarian consumption during winter.

Supply from Tamil Nadu has also reduced, causing further pressure on local markets. According to the Karnataka Poultry Traders Association, Bengaluru needs about 1.10 crore eggs daily, but there is a shortage of nearly 30–40 lakh eggs.

Last year’s bird flu outbreak also affected poultry farms, leading to lower production this season.

Goa has seen a similar trend. Egg prices there have increased to ₹90 per dozen, and further hikes are expected in the third week of December. Reports suggest that rates may stay high until early 2026.

Goa depends heavily on neighboring states for its supply — around 80% from Karnataka and the rest from Maharashtra. Meanwhile, gold prices too have shown an upward trend.

Business

MRPL Wins Fourth Consecutive Best Refining Innovation Award at ETM 2025

Published

1 month ago

October 29, 2025

Namma Kudla

Hyderabad, October 28, 2025:

Mangalore Refinery and Petrochemicals Limited (MRPL), a subsidiary of ONGC and a leading Category-I Miniratna Central Public Sector Enterprise (CPSE) under the Ministry of Petroleum and Natural Gas, has achieved yet another milestone. The company has won the Innovation Award 2024-25 for Best Innovation in Research & Development in Refining Technology at the 28th Energy Technology Meet (ETM 2025) held in Hyderabad.

This marks MRPL’s fourth consecutive victory at these prestigious national awards, reaffirming its position as a pioneer in indigenous innovation within India’s refining sector.

The award recognizes MRPL’s breakthrough “Gradual Olefins and Aromatic Technology (GOAT)”, an advanced Crude-to-Chemicals process developed entirely by the company’s in-house R&D team. The GOAT technology demonstrates India’s growing capability to transform crude oil directly into high-value petrochemicals, thereby improving energy efficiency, cutting carbon emissions, and contributing to the nation’s sustainable refining goals.

The award was presented by Shri Hardeep Singh Puri, Hon’ble Minister of Petroleum & Natural Gas, in the presence of Shri Pankaj Jain, Secretary, Ministry of Petroleum & Natural Gas. The ceremony was organized by the Centre for High Technology (CHT) at the Hyderabad International Convention Centre (HICC).

Receiving the award on behalf of MRPL were Shri Nandakumar V. Pillai (Director – Refinery), along with Chief Managers Shri Karthick R. and Shri S. Nirmal Ganesh from MRPL’s Innovation Centre.

The 28th Energy Technology Meet, themed “Green Energy Horizons: Advancing Sustainable Refining & Energy Innovation,” serves as India’s leading platform for sharing advancements in refining and clean energy technologies. Organized by CHT under the Ministry of Petroleum & Natural Gas, ETM 2025 brings together refiners, petrochemical producers, technology providers, equipment manufacturers, and service companies from India and abroad to discuss sustainable and low-carbon pathways for the energy sector.

The three-day event, held from October 28 to 30, 2025, focuses on innovations driving India’s energy transition and circular economy efforts.

Speaking after receiving the award, Shri Nandakumar V. Pillai said,

“MRPL has always been a frontrunner in adopting and developing advanced technologies. Our Innovation Centre is not only creating but also implementing breakthrough technologies like GOAT — a futuristic Crude-to-Chemicals process that many in the global refining industry are still aspiring to achieve. Winning this recognition for the fourth consecutive year reflects our team’s commitment, creativity, and technical excellence. I congratulate our Innovation Centre team and wish them continued success in future innovations.”

Business

RBI Keeps Repo Rate Unchanged at 5.5% in October Policy Review

Published

2 months ago

October 1, 2025

Namma Kudla

New Delhi: The Reserve Bank of India (RBI) has decided to keep the key policy interest rate unchanged at 5.5% for the second consecutive review. The decision was announced by RBI Governor Sanjay Malhotra after the Monetary Policy Committee (MPC) meeting on Wednesday.

The MPC voted unanimously to maintain the repo rate at 5.5% with a neutral stance. Governor Malhotra said the central bank took the step due to uncertainties over tariffs, even as inflation remains under control.

Retail inflation has stayed below 4% since February this year. It eased to a six-year low of 2.07% in August, helped by lower food prices and a favourable base effect.

The October policy comes at a time when the recent cut in Goods and Services Tax (GST) is expected to support domestic demand.

This is the fourth bi-monthly monetary policy review of the current financial year.