India

Bloomberg analysts suggest India’s central bank’s decision to maintain high-interest rates reflects a cautious approach towards inflation, potentially hindering economic growth. They anticipate the bank might start easing rates by August but warn that prolonged high rates could limit growth potential. Separately, India plans to attract at least USD 100 bln per year in FDI, a significant increase from the past average, to diversify away from China and address operational challenges for foreign businesses.