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Relief for borrowers as RBI slashes repo rate by 50 basis points

The Reserve Bank of India has cut the repo rate by 50 basis points to 5.5%, promising relief for borrowers and boosting optimism in the real estate market.

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Reserve Bank of India

In a significant move aimed at stimulating economic activity and easing the financial burden on borrowers, the Reserve Bank of India (RBI) has announced a 50 basis point cut in the repo rate, bringing it down to 5.5%. This decision, taken unanimously during the Monetary Policy Committee (MPC) meeting held from June 4 to 6, exceeds market expectations and is being seen as a proactive measure to support growth amid a softening inflation environment.

Major takeaway for homebuyers and borrowers

This steeper-than-expected rate cut is set to ease equated monthly installments (EMIs) on long-term loans, particularly home loans. With lending costs likely to fall, banks and financial institutions are expected to pass on the benefit to consumers, making borrowing more affordable. This move is especially encouraging for prospective homebuyers in the mid-income segment, who stand to gain from lower interest payments.

RBI outlook: Steady growth, easing inflation

RBI Governor Sanjay Malhotra explained that despite a fragile global economic backdrop and downward revisions in international trade forecasts, the Indian economy continues to show resilience. “India’s strength comes from the strong balance sheets of five major sectors. We are already growing fast and aspire to grow faster,” he remarked.

Inflation has remained within RBI’s comfort zone, with retail inflation falling to 3.16% in April from 3.34% in March. The central bank now projects the retail inflation for the current financial year at 3.7%, an improvement from its earlier forecast of 4%. Food inflation remains soft, and core inflation is expected to stay benign.

CRR reduction adds liquidity

In another key decision, the RBI also reduced the cash reserve ratio (CRR) by 100 basis points, effectively releasing ₹2.5 lakh crore into the banking system. This is likely to enhance liquidity and improve the capacity of banks to lend.

Sectoral impact: Real estate gets a boost

The real estate sector has welcomed the rate cut. According to experts, the move is likely to strengthen homebuyer sentiment, drive enquiries, and lead to an uptick in residential property sales, especially in urban markets. Vimal Nadar of Colliers India noted that the reduced borrowing costs could significantly improve affordability in mid-income housing.

Piyush Bothra, co-founder of Square Yards, highlighted that the decision will give developers confidence to launch new projects, particularly in low-to-mid housing segments. “A 50-bps reduction will translate into meaningful EMI savings,” he said.

India remains attractive for investors

Governor Malhotra underscored India’s appeal to global investors, noting that the country’s forex reserves stand at $691 billion—enough to cover over 11 months of goods imports. Key economic indicators including discretionary spending, private consumption, and industrial activity remain robust, he added.

While maintaining the GDP growth projection at 6.5% for the current financial year, the RBI outlined quarterly growth expectations as follows: 2.9% (April-June), 3.4% (July-September), 3.9% (October-December), and 4.4% (January-March).

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BJP spokesperson Shehzad Poonawalla’s mother injured in hit-and-run incident in Pune

BJP spokesperson Shehzad Poonawalla has alleged that his mother was deliberately hit by a car in Pune and left critically injured. She is scheduled to undergo surgery.

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Shehzad Punawalla

BJP national spokesperson Shehzad Poonawalla has claimed that his mother was seriously injured after being struck by a car in an alleged hit-and-run incident in Pune. The accused reportedly fled the spot after the incident, leaving her critically injured.

According to Poonawalla, the incident occurred a few hours earlier and his mother is scheduled to undergo surgery. He appealed to authorities to identify and arrest the person responsible at the earliest.

Sharing details on social media, Poonawalla said an unidentified individual ran a car over his mother and escaped from the scene. He requested prayers for her recovery and expressed anguish over the incident, describing his mother as a compassionate person whose injury had deeply shaken him.

He also tagged Pune City Police, senior police officials, and Maharashtra Chief Minister Devendra Fadnavis, urging strict legal action against the accused and ensuring that the person does not evade accountability.

CCTV footage surfaces, police complaint to be filed

In a related development, Poonawalla’s brother and political analyst Tehseen Poonawalla shared CCTV footage on social media that allegedly shows the moment their mother was hit by the vehicle.

Tehseen stated that his mother, a senior citizen, had stepped out of the car while it was being refuelled when the incident occurred. He alleged that the act appeared deliberate and said efforts were underway to identify the vehicle involved.

He further confirmed that a police complaint would be filed and questioned how the vehicle could have hit his mother when she was standing at a distance from the car.

Fractured hip, surgery planned

Providing an update on her medical condition, Tehseen said their mother had suffered a fractured hip and would require surgical intervention. She has been admitted to hospital and doctors are monitoring her vitals ahead of surgery.

He described the incident as infuriating and heartbreaking, adding that his mother would need a rod implant following the hip surgery. He also said he had spoken to senior police officials and expressed hope that swift action would be taken.

Authorities have not yet issued an official statement on the incident. Further details are awaited as investigations continue.

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Three sisters die after jumping from ninth floor in Ghaziabad

Three minor sisters died after jumping from the ninth floor of their Ghaziabad apartment, allegedly following a dispute over online gaming, police said.

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Three sisters die after jumping from ninth floor in Ghaziabad

Three minor sisters died after jumping from the ninth floor of their apartment building in Uttar Pradesh’s Ghaziabad, allegedly following objections by their parents to their online gaming habits.

The incident occurred at Bharat City, a residential township in Ghaziabad, at around 2 am on Wednesday. The girls were found dead at the spot.

The sisters have been identified as Pakhi, aged 12, Prachi, 14, and Vishika, 16.

According to police, the three siblings were extremely close and spent most of their time together. They reportedly followed the same daily routine, including bathing, eating, attending school, and sleeping together.

Preliminary findings suggest the girls had become addicted to online gaming during the COVID-19 pandemic. They were reportedly playing an online task-based game referred to as a ‘Korean love game’. Police also said the sisters were not attending school regularly.

Investigators said the parents had objected to the girls’ excessive gaming, following which the incident allegedly took place. Police teams reached the spot soon after and have begun an investigation to ascertain the exact sequence of events.

Further details are awaited as the probe continues.

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US tariff cut to 18% is positive signal for Indian exporters, says Sitharaman

Nirmala Sitharaman says India’s exports could recover after the US reduced tariffs on Indian goods to 18%, restoring competitiveness in key sectors.

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Nirmala Sitharaman

India’s exports to the United States are expected to gain momentum following Washington’s decision to reduce tariffs on Indian goods to 18%, Finance Minister Nirmala Sitharaman said on Tuesday, describing the move as a “good auguring” for exporters.

Speaking in an interview to media, Sitharaman said the tariff reduction would help Indian exporters regain competitiveness in the US market, particularly after the sharp impact of punitive duties imposed last year.

“So, actually our exports will pick up now, that is my expectation,” she said, adding that exporters had also identified alternative markets during the period of elevated tariffs and would continue operating in them.

Tariff rollback brings relief after export setback

The US had imposed steep tariffs of up to 50% on Indian goods last year, which significantly raised landed costs and squeezed exporter margins. Several sectors, including steel, aluminium, textiles, engineering goods and certain agricultural products, were affected as US buyers diverted orders to other suppliers.

On Monday, US President Donald Trump announced a reduction in tariffs on Indian goods to 18% as part of a broader trade understanding. The agreement includes India lowering trade barriers and committing to stop purchases of Russian oil, instead sourcing energy from the US and potentially Venezuela.

On implementation, the revised tariff structure would bring duties on Indian exports broadly in line with other Asian economies, where rates range between 15% and 19%.

Improved competitiveness against regional rivals

The 18% tariff undercuts duties imposed on key regional competitors such as Vietnam and Bangladesh, which face tariffs of around 20%. This is expected to restore India’s price advantage in the US market.

Labour-intensive sectors such as apparel, footwear and jewellery are likely to see the most immediate benefit. These segments had witnessed a sharp fall in orders after the 50% tariffs imposed in August severely dented competitiveness.

Earlier in the day, Sitharaman described the development as “good news for #MadeInIndia products” in a social media post, noting that Indian goods would now face reduced duties in the US market.

Trade and capital flow impact

Earlier punitive tariffs had also weighed on bilateral trade. India’s trade surplus with the US shrank by an average of USD 2.5 billion per month between September and December 2025 compared to the January–August period, according to research cited in the report.

Investor sentiment had weakened as well, with foreign investors pulling out nearly USD 14 billion in equities since July 2025.

The rollback of the additional 25% punitive tariff linked to Russian oil purchases effectively lowers the applied tariff on Indian exports from 50% to 18%, offering significant relief to exporters and improving prospects for a recovery in trade flows.

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