Consumer price inflation has crossed RBI's comfort zone of 4%, with upper and lower margins of 2%. In fact, such a sustained rise in inflation will, sooner or later, force RBI to increase interest rates in line with its global peers, affecting the nascent economic recovery. This also gives the FM less room to announce steps to boost demand. Any extra money in hands of the common man will further push inflation.
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Macro
Budget 2022: High consumer inflation rules out big demand push
Inflation has exceeded RBI's comfort levels, forcing the central bank's hand to hike interest rates in line with its global peers.
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Car sales jump 32% in Oct; 2-wheelers see 36% growth: FADA
The passenger vehicle segment’s growth was driven by the festivals coinciding in October, boosting consumer purchasing.
Cabinet approves ₹10,700 cr equity infusion into FCI to boost working capital & cut borrowing
By reducing reliance on short-term borrowings, with the equity infusion, the government aims to cut FCI’s interest expenses and lower its subsidy burden.
Trump 2.0: What it means for India, Asia, other emerging markets
As Trump outlines expansive trade and economic policies, should India and other EMs brace for shifts in trade, investment policies and geopolitical alliances? Here’s what experts say
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Emphasising the impact of rising capital costs on profitability and efficiency, Harshjit Sethi, managing director at Peak XV Partners, offers insights into India’s shifting startup landscape.