Business

Experts Believe Steady Retail Inflation Strengthens Chances of RBI Rate Cut in April

Published

1 year ago

March 14, 2025

Recent data on the consumer price index (CPI) shows that inflation for the fourth quarter of FY25 may fall below the Reserve Bank of India’s (RBI) prediction by more than 40 basis points. This trend reinforces the possibility of an interest rate cut in April, according to industry experts on Wednesday.

In February, the year-on-year inflation rate dropped to a seven-month low of 3.61%, which is 0.65% lower than January’s figures, largely due to a further decline in food prices.

“The overall decrease in food inflation, driven by perishables and certain protein items, significantly contributed to the better-than-expected CPI results for February,” stated Madhavi Arora, Chief Economist at Emkay Global Financial Services.

To promote growth, both the RBI and the government have enacted measures such as lowering policy interest rates and reducing income tax to enhance disposable income for households.

“To further stimulate growth, we expect the RBI to introduce another repo rate cut in the upcoming MPC meeting in April. Although this could add some inflationary pressure, it is essential for supporting growth, particularly in sectors like housing where credit is vital,” noted Vivek Rathi, National Director of Research at Knight Frank India.

Meanwhile, industrial output for January climbed to 5%, significantly exceeding the anticipated 3.5%, signaling robust manufacturing activity and strength across various sectors.

“This dual surprise in the economy—where inflation is declining faster than expected while industrial production displays unexpected strength—creates a favorable macroeconomic climate that is likely to boost bullish market sentiment,” commented Devarsh Vakil, Head of Prime Research at HDFC Securities.

The growth in industrial performance was predominantly driven by advancements in manufacturing and mining, even as electricity growth tapered off.

“A sustained and widespread improvement in consumption is essential, especially given the lagging urban demand,” emphasized Rajani Sinha, Chief Economist at CareEdge Ratings.

“The continuous easing of inflationary pressures, the anticipated rate cut by the RBI, and the reduced income tax burden will serve as supporting factors for a recovery in consumption. Improving consumer demand is also vital for enhancing the investment landscape.”

Business

Overseas Loans by Indian Firms See Sharp Decline

Published

1 day ago

May 17, 2026

Namma Kudla

Business : Indian companies borrowed $5.43 billion from abroad in March, according to RBI data. This was 51% lower than March last year.

Experts said the weak rupee and high global interest rates made foreign loans less attractive for companies.

In the financial year 2025-26, India Inc raised nearly $43 billion through foreign borrowings. This was down from $61 billion in the previous year.

In March 2025, borrowings had crossed $11 billion due to large deals by companies like JSW Steel and Tata Semiconductor Manufacturing.

Companies are also avoiding overseas loans because hedging costs have become expensive during currency volatility.

The RBI reportedly discussed easing foreign borrowing rules and offering hedging support, but no final decision was taken.

Market experts said the ongoing West Asia conflict has increased uncertainty, making companies cautious about raising funds from abroad.

Business

Fuel Prices Hiked by Rs.3 per Litre across India

Published

3 days ago

May 15, 2026

Namma Kudla

New Delhi: Petrol and diesel prices have been increased by Rs.3 per litre across the country from today. Oil marketing companies revised the rates due to the rise in global crude oil prices.

After the hike, petrol price in Bengaluru has reached Rs.106.17 per litre, while diesel now costs Rs.94.10 per litre.

The increase comes amid fluctuations in international crude oil prices and tensions in West Asia, including the Iran conflict. The fall in the value of the Indian rupee against the US dollar has also increased import costs.

The fuel price hike is expected to affect transportation and daily essentials. Transport charges for goods may rise, leading to higher prices of vegetables, fruits, milk, and other items. Bus, auto, and taxi fares may also increase.

Earlier, fuel prices were reduced before the 2024 Lok Sabha elections. In 2022, the Centre had also cut excise duty to control inflation after the Covid pandemic.

Business

Gold Prices Rise in Mangaluru; Demand for Ornaments Remains Strong

Published

2 weeks ago

May 4, 2026

Namma Kudla

Mangaluru: Gold prices in the coastal city of Mangaluru have been reported at high levels today. The rate for 24 karat gold (99.9% purity) stands at Rs.14,962 per gram. The price for 22 karat gold (91.6% purity) is Rs.13,715 per gram. Meanwhile, 18 karat gold (75% purity) is being sold at Rs.11,222 per gram.

Mangaluru is well known for its deep cultural connection with gold. The city has a long tradition of buying and wearing gold ornaments. This tradition continues strongly even today.

Local jewellers say that demand for gold remains steady despite high prices. Many people still prefer to invest in gold for safety and long-term value. Gold is also an important part of weddings and festivals in the region.

Apart from its love for seafood, Mangaluru is also famous for its gold market. The gold trade in the city has a long history and continues to grow.

Buyers are advised to check the latest rates before making a purchase. They can also use a gold rate calculator to get exact pricing based on weight and purity.

Experts say that gold prices may change depending on global market trends. Customers should stay updated and make careful decisions while buying gold.