India's retail inflation dropped to a seven-month low of 3.61% in February, with food inflation at a near two-year low of 3.75%, easing cost of living pressures.
This inflation rate is within the RBI's 4% target, potentially leading to a future repo rate cut.
The RBI cut the repo rate by 0.25 basis points to 6.25% in February, aiming to boost economic activity.
The RBI is injecting over ₹2 trillion into the banking system to counter a ₹1.7 trillion liquidity squeeze caused by foreign investor outflows.
January's industrial production rose to an eight-month high of 5%, driven by growth in primary, intermediate, and infrastructure sectors.
Mutual fund inflows fell by 27% in February, and SIPs reached their lowest point in the fiscal year, indicating investor nervousness.
The government has a GDP growth target of 6.5% for the 2025 financial year.
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