Business

Drop in Inflation Opens Doors for Increased GDP Growth

Published

1 year 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

Tomato Prices Crash from Rs.1200 to Rs.80, Farmers in Distress

Published

3 weeks ago

March 25, 2026

Namma Kudla

Business: Tomato prices in Vijayanagara district have dropped sharply, causing heavy losses to farmers and traders. A box of tomatoes that was earlier sold for Rs.1000 to Rs.1200 is now being sold for just Rs.80 to Rs.100.

Due to the sudden fall in prices, farmers are struggling to recover their investment. Many had taken loans to grow the crop and are now facing financial difficulties.

In local markets, traders are selling tomatoes at very low rates. Around 2 to 4 kilograms of tomatoes are being sold for just Rs.20.

The price crash has been linked to multiple reasons. Export of tomatoes to other countries has reduced due to the Iran–Israel conflict. In addition, many hotels are not operating properly due to a shortage of cooking gas cylinders. This has reduced demand for tomatoes.

As a result, both farmers and sellers are facing serious losses, and the situation has become very difficult for them.

Business

Gold Prices Rise in Mangaluru; 24K Gold at Rs.13,564 per Gram

Published

3 weeks ago

March 24, 2026

Namma Kudla

Mangaluru: Gold prices in the coastal city of Mangaluru have been updated today, reflecting the latest market trends.

The price of 24 karat gold (99.9% purity) stands at Rs.13,564 per gram. Meanwhile, 22 karat gold (91.6% purity) is priced at Rs.12,434 per gram. The rate for 18 karat gold (75% purity) is Rs.10,173 per gram.

Mangaluru, known for its rich coastal culture and love for seafood, also has a deep connection with gold. The demand for gold ornaments in the city remains strong, especially during weddings and festivals.

The gold trade in Mangaluru has a long history and continues to play an important role in the local economy. Many families prefer investing in gold due to its cultural and financial value.

Buyers are advised to check the latest rates before making any purchase, as gold prices may change daily based on market conditions.

For those planning to buy gold, using a Gold Rate Calculator can help in getting accurate pricing based on weight and purity.

Business

Good News for Milk Producers in Chikkaballapur – 50 Paise Increase per Litre

Published

1 month ago

March 8, 2026

Namma Kudla

Chikkaballapur: The Chikkaballapur Milk Union (Chimul) has announced good news for milk producers in Chikkaballapur district. The union has decided to increase the milk procurement price by 50 paise per litre, which will benefit dairy farmers in the district.

Earlier, on January 1, Chimul had increased the price by Rs.1 per litre as a New Year benefit to farmers. Now, the union has announced an additional 50 paise increase.

With this latest revision, dairy farmers will receive Rs.36.40 per litre for milk. The 50 paise increase will remain in effect until the end of May.

Chimul President Manjunath Reddy told Public TV that the union will review its profits and may continue the price increase in the future based on financial performance.

The decision is expected to provide some relief and encouragement to dairy farmers in Chikkaballapur district.