Theme: Macro Economy | Could the RBI announce a rate cut in its next monetary policy decision?
Description
In this episode of State of Economy, Shishir Sinha talks with Professor Anil K. Sood, co-founder of the Institute for Advanced Studies, about India's economy and key economic indicators such as GST collections, fiscal management, and the impact of monsoon variability on agriculture.
Professor Sood highlights that "GST collections were expected to slow down, particularly due to moderation in the automobile sector and a decline in government infrastructure spending." He raises urgent concerns about fiscal management, asserting, "Given the current trends in revenue and expenditure, it’s very likely that the fiscal deficit at the end of FY25 may be lower than the budget estimate."
Professor Sood points out, "While aggregate monsoon numbers may seem normal, the distribution has been far from it, leading to uncertainty in agricultural productivity that could affect rural consumption."
When discussing retail inflation, Professor Sood says, "Retail inflation is likely to stay at or below 4%, but food inflation poses a risk due to uncertainties in agricultural production across states."
(Host: Shishir Sinha, Producer: Rowan Barnett, Siddharth Mathew Cherian)
About the State of the Economy podcast
India’s economy has been hailed as a bright spot amid the general gloom that seems to have enveloped the rest of the world. But several sectors continue to stutter even as others seem set to fire on all cylinders.
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