Economy

The reverse repo rate was also raised by 25 basis points, to 6.25 per cent.

The rate action was in line with a Reuters poll last week, which showed 37 of 63 economists expecting a rate increase.

RBI Policy: The reverse repo rate or the rate at which RBI borrows from commercial banks stands adjusted to 6.25 per cent.

The RBI released its third bi-monthly policy statement for 2018-19.

The Nikkei Manufacturing Purchasing Managers' Index, compiled by IHS Markit, decreased to 52.3 in July from June's 53.1, below a Reuters poll median of 53.0.

The Reserve Bank of India (RBI) will release its monetary policy statement today. Analysts will watch the outcome of the three-day meeting closely to find out whether the central bank's Monetary Policy Committee decides to hike the repo rate - the key rate at which the RBI lends short-term funds to commercial banks - or introduce a more aggressive policy stance. The Monetary Policy Committee, headed by RBI Governor Urjit Patel, had in its last bi-monthly review hiked the repo rate for the first time in four-and-a-half years and retained its stance at 'neutral', citing uncertainty in terms of inflationary risks. Since then, rising consumer inflation and declining factory output has kept economists divided on what to expect from the central bank.

The growth in output compares with an upwardly revised 4.3 per cent year-on-year growth in May.

The government expects to trim the deficit to 3.3 per cent of GDP this fiscal year, after meeting an upwardly revised fiscal deficit target of 3.5 per cent of GDP in 2017-18.

Retail inflation has gone beyond the RBI's revised projection of 4.8-4.9 per cent for the first half of the fiscal year.

GST Council in its meeting last week had decided to reduce taxes on 88 items, like sanitary napkins, fridge, small screen TV, footwear, among others.

Analysts in the most recent Reuters poll expect China's economy, the world's second largest, to grow 6.6 per cent this year.

A bill specifying the turnover of a business entity which would classify it as a micro, small or medium enterprise, was introduced by the government in the Lok Sabha on Monday.

The GST Council has pruned the 28 per cent slab by cutting tax rates on 191 goods over the last one year, leaving just 35 items.

The growth in India will be driven by increased public spending, higher capacity utilisation rate and uptick in private investment, according to Asian Development Bank.

Wholesale inflation for the month of June stood at 5.77 per cent against 4.43 per cent of May and 0.90 per cent during the corresponding month of the previous year, according to official data released on Monday.