Economy

Analysts polled by news agency Reuters had forecast that retail inflation will accelerate in March on slightly higher food prices but remain under the Reserve Bank of India's medium-term target of 4 per cent.

The RBI, which tracks consumer inflation primarily to formulate its monetary policy, earlier this month announced its decision to reduce the repo rate by 25 basis points to 6 per cent - a level last seen in May 2018.

The interim Budget presented in February revised upward the fiscal deficit target to 3.4 per cent from 3.3 per cent of GDP estimated earlier for 2018-19.

In 2019, the International Monetary Fund (IMF) projected a growth rate of 6.3 per cent for China and 6.1 per cent in 2020

Designed as an anti-evasion measure, the e-way bill system was rolled out on April 1, 2018, for moving goods worth over Rs 50,000 from one state to another.

With robust growth, and food prices poised to recover, inflation is expected to converge toward four per cent, said World Bank

Talking about avenues of growth for the next 20 years, the finance minister listed infrastructure creation, rural expansion and gender parity, among others.

Fitch had last upgraded country'ssovereign rating from 'BB+' to 'BBB-' with a stable outlook on August 1, 2006.

In its previous policy outcome in February, the RBI had projected retail inflation between 3.2-3.4 per cent for the first half of 2019-20.

The MPC, headed by RBI Governor Shaktikanta Das, noted that the output gap remains negative and the domestic economy is facing headwinds, especially on the global front.

Speaking at an industry event, Mr Jaitley also said the government would look at reducing the goods and services tax on cement.

The six-member monetary policy committee (MPC) cut the repo rate to 6.00 per cent as predicted by 57 of 67 analysts polled by Reuters last week. The reverse repo rate was reduced to 5.75 per cent.

Four out of the six members of the Monetary Policy Committee voted in favour of a 25 basis points cut in repo rate, while the other two voted to keep rate unchanged.

The Reserve Bank of India (RBI) is expected to announce a reduction of 25 basis points (0.25 per cent) in the key interest rate to 6 per cent today. The central bank is due to release its first bi-monthly policy statement for financial year 2019-20 at 11.45 am. Any reduction in the repo rate, the key interest rate at which the RBI lends short-term funds to commercial banks, would mark the second reduction so far this calendar year, and also the second under Governor Shaktikanta Das, who assumed office in December last year.

The monsoon season delivers about 70 per cent of India's annual rainfall and is key to the success of the farm sector in Asia's third-biggest economy.