India’s government must create space for the central bank to cut the key interest rate and revive economic growth, according to Yashwant Sinha, a former finance minister with the main opposition party.
An Indian Finance Ministry panel has recommended easing foreign investment rules in more than a dozen industries to help fund a record current-account gap, according to three government officials with knowledge of the matter.
Monsoon-sown grain production in India may climb to a record this year as the best start to the rainy season since 1994 spurs rice and corn planting, potentially easing inflation in Asia’s third-largest economy.
Food-price inflation in India, Asia’s third-largest economy, may accelerate after the government raised the prices it pays farmers for rice and oilseeds to records, making crops costlier, economists said.
India’s sovereign credit outlook was lowered to negative from stable by Standard & Poor’s, taking the nation a step closer to junk status and dealing a further blow to Prime Minister Manmohan Singh’s economic agenda.