Business
If softening of inflation continues further, then it would eventually lead Fed to taper its aggression: Sneha Poddar
Sneha Poddar, AVP Research, Broking & Distribution, Motilal Oswal Financial Services, said if the softening of inflation continues further, then it would eventually lead to the US Federal Reserve to taper its aggression. The Reserve Bank of India (RBI) is more likely to follow the US Fed and thus would not taper its tone till its is adopted by the latter.
Here are excerpts from the interview:
Q. Do you think after US CPI inflation print which came below estimates will allow Fed to go slow on rate hike, and RBI will follow the same?
A: The US CPI inflation data for the month of July came in at 8.5 per cent, down from 9.1 per cent in June and slightly below expectation of 8.7 per cent. However the Fed officials have responded to softening inflation data by saying it doesn’t change their stance towards higher interest rates, as the inflation still remains above the unacceptable levels. Since this is just first sign of inflation peaking out, and is too early to rule out subsequent high inflation data, uncertainty will loom over when the US Fed would slow down on its aggressive rate hikes. If the softening of inflation continues further, then it would eventually lead Fed to taper its aggression. The RBI is more likely to follow US Fed and thus would not taper its tone till its is adopted by US Fed.
Q. 5.40 per cent repo rate is already above pre-pandemic level, but still the RBI maintains “withdrawal of accomodation” stance. Do you think the neutral level of the repo rate is at or above 6 per cent?
A: The RBI has cumulatively hiked the policy repo rate by 140bp to 5.4 per cent in FY23 till date. It reiterated its continued focus on “withdrawal of accommodation” to contain inflation while supporting growth. However, it kept its inflation/growth forecasts unchanged at 6.7 per cent/7.2 per cent YoY, respectively, for FY23. This seems very confusing as how can the rate hikes help contain inflation without hurting growth? Further, the MPC did not sound dovish at all. There was neither a change in stance nor a relief in the RBI Governor’s statement disclaiming a possible pause in rate hikes. Thus we believe that the terminal rate in this hike cycle might be at 5.75-6.0 per cent
Q. In the current market conditions, which sectors are likely to perform well from an investor returns point-of-view?
A: We believe BFSI can do well in rising interest rate scenario. On the other hand with good monsoon, upcoming festive season and softening of commodity prices, the demand both urban and rural are expected to revive and pick up and thus we are positive on Consumer, Auto and Retail. With the opening up of economy and the structural shift being witnessed in favour of the industry post Covid, QSR remains in a sweet spot. While uncertainty around quantum of interest rate hikes is likely to impact the performance of real estate stocks in the near term, longer-term thesis on revival of housing cycle remains intact. There is imminent opportunity in the domestic Hospitality industry and the expected upcycle bodes well for the sector. We are selectively looking at IT sector as valuations have become attractive for accumulation from long term perspective.
Q. Where you see levels on benchmark indices going forward considering the FI inflows in the domestic equities?
A: Strong momentum in the market has helped Nifty rally by more than 2500 points from June lows, and thus, has wiped out the entire decline for the calendar year till date and turned positive. Strong macro data, FII turning positive, steady earnings and healthy progress in monsoon have been some of the key factors supporting the market. FIIs (including primary market) turned positive for the month of July after nine months of continuous outflows and has been continuous buyer throughout the month of August so far. With the softening of commodity prices, even inflation seems to be peaking out and festive season is about to begin which should support demand and thus corporate earnings. Thus the overall trend in the market seems to be positive, however bouts of volatility can’t be ruled out as uncertainty over rate hike quantum and China-Taiwan tussle continues. Further, with this recent rally, Nifty now trades at ~20x FY23E, above its 10-year average, thus offering limited upside in the near term. Going forward, it could be a tug of war between domestic and global factors which could determine the market direction.
Business
India’s services-led growth becoming more balanced, inclusive: NITI Aayog report

New Delhi, Oct 28: The services-led growth in India’s economy is becoming more regionally balanced as states with lower initial shares in services are catching up with more advanced ones, according to a NITI Aayog report released on Tuesday.
“There is clear evidence that structurally lagging States are beginning to catch up with advanced ones. This emerging pattern of convergence suggests that India’s services-led transformation is gradually becoming more broad-based and spatially inclusive,” the report states.
The services sector has become the cornerstone of India’s economic growth, contributing nearly 55 per cent of national GVA (Gross Value Added) in 2024-25.
To guide policy, the report introduces a quadrant-based framework that classifies 15 major service sub-sectors into four categories-Engines of Growth, Emerging Stars, Mature Giants, and Struggling Segments-to support differentiated strategies across States.
The report recommends prioritising digital infrastructure, logistics, innovation, finance, and skilling to accelerate diversification and competitiveness at the sectoral level.
It also recommends that at the state level there is a need for developing tailored service strategies based on local strengths, improving institutional capacity, integrating services with industrial ecosystems, and scaling up urban and regional service clusters.
Together, these findings offer a forward-looking policy road map for positioning the services sector as a key growth engine across India, reinforcing its central role in the Viksit Bharat @2047 vision.
A companion report titled India’s Services Sector: Insights from Employment Trends and State-Level Dynamics, focusses on employment within the services sector, drawing on data from the NSS (2011-12) and PLFS (2017-18 to 2023-24).
It offers a long-run and multi-dimensional view of India’s services workforce across sub-sectors, gender, regions, education, and occupations. The report goes beyond aggregate trends to reveal the sector’s dual character: modern, high-productivity segments that are globally competitive yet limited in employment intensity, and traditional segments that absorb large numbers of workers but remain predominantly informal and low-paying.
By linking historical and contemporary data, it situates these patterns within a broader framework of structural transformation, offering an integrated understanding of the opportunities and divides that shape India’s services-led employment transition.
Findings show that while services remain the mainstay of India’s employment growth and post-pandemic recovery, challenges persist. Employment generation is uneven across sub-sectors, informality remains widespread, and job quality continues to lag behind output growth. Gender gaps, rural-urban divides, and regional disparities underline the need for an employment strategy that integrates formalisation, inclusion, and productivity enhancement at its core.
To bridge these gaps, the report outlines a four-part policy road map focussing on formalisation and social protection for gig, self-employed, and MSME workers; targeted skilling and digital access to expand opportunities for women and rural youth; investment in emerging and green economy skills; and balanced regional development through service hubs in Tier-2 and Tier-3 cities.
By positioning the services sector as a purposeful driver of productive, high-quality, and inclusive jobs, the report underscores its centrality to India’s employment transition and its pivotal role in realising the vision of ‘Viksit Bharat @2047’.
The reports emphasise the need to deepen digital infrastructure, expand skilled human capital, foster innovation ecosystems, and integrate services across value chains, positioning India as a trusted global leader in digital, professional, and knowledge-based services.
Business
US lawmakers unite to defend bilateral ties with India through letters and resolutions

Washington, Oct 28: Both Republican and Democratic lawmakers have joined hands to support the India-US relationship, months after the Trump administration announced a series of policies targeting Indian interests.
At least six bipartisan letters and resolutions have been drafted over the past 10 days defending the interests of the Indian American community, reaffirming support for the India–US partnership, and pressing the administration for accountability over its recent actions targeting New Delhi.
Last week, a group of House members expressed concern that an event at Rutgers University on Monday could “fuel further prejudice” against Hindus at a time when Hindu temples have been targets of violence.
The co-signers of the letter were Democrats Sanford Bishop from Georgia, Shri Thanedar from Illinois, and Suhas Subramanyam from Virginia, and Republican Rich McCormick, also from Georgia.
Two days earlier, another bipartisan group of six House Representatives wrote to US President Donald Trump and Commerce Secretary Howard Lutnick, expressing concerns over the H-1B proclamation.
“We are concerned that the recent proclamation related to H-1B visa petitions will create significant challenges for US employers and overall weaken our competitiveness,” the letter stated.
The group again included Democrat Suhas Subramanyam along with Republican Congressmen Jay Obernolte and Don Bacon, among others.
On October 17, four US lawmakers wrote to President Donald Trump, urging him to attend the Quad Leaders’ Summit in India and other meetings in Asia.
The same day, a bipartisan resolution was introduced in the House of Representatives to recognise the “contributions made to the United States by the Indian American diaspora” and condemn recent acts of racism against Indian Americans.
The resolution also termed the India-US relationship as “one of the most important democratic partnerships in the world”.
It was a sharp departure from just days earlier, when 19 House members, all Democrats with no Republican support, wrote to President Donald Trump on October 8, urging him to “reset and repair” the India-US “critical partnership”.
Leaders from both Democratic and Republican parties have faced criticism for mostly remaining silent as senior officials of the Trump administration, like Trade Advisor Peter Navarro and Commerce Secretary Howard Lutnick, repeatedly targeted India over its purchase of Russian oil and trade imbalance.
In August, the Trump administration imposed 50 per cent tariffs on New Delhi, which included a 25 per cent levy for importing Russian oil.
Then, in September, President Donald Trump signed a proclamation on H-1B visas, imposing a $100,000 application fee to restrict the programme. Over 70 per cent of the approved H-1B applications in 2024 went to Indian nationals.
While a handful of Democrats opposed the administration’s stance publicly, Republican lawmakers, until recently, decided to keep quiet.
In early October, Democratic Representative Ami Bera, a leading advocate of the US-India relationship, told Media that some Republican lawmakers have remained silent out of fear of the president.
“I think they’re certainly afraid to take on President Trump directly,” he said.
In recent weeks, ties have stabilised, and negotiators have resumed talks to finalise the first phase of a trade agreement.
Last week, President Donald Trump held a special Diwali event at the White House where he termed Prime Minister Narendra Modi “a great person” and said he loves “the people of India.”
Bera added that more members should come out to support the relationship.
“Instead of making this about President Trump, let’s make it about the US-India relationship. Let’s make it about what we think as members of Congress – Democrats and Republicans. I don’t want the India-US relationship to be a Democratic thing or a Republican thing. It should be an American thing,” he told Media.
Business
Maharashtra Signs ₹56,000 Crore MoUs To Boost Maritime Trade & Industry

Mumbai: Chief Minister Devendra Fadnavis expressed confidence that Maharashtra will lead the country in the fields of maritime trade and industry through the Memorandums of Understanding (MoUs) signed today. A total of 15 MoUs were signed in the presence of the Chief Minister during India Maritime Week 2025, held at NESCO, Goregaon.
Also present were Fisheries and Ports Minister Nitesh Rane, Additional Chief Secretary (Ports) Sanjay Sethi, CEO of Maharashtra Maritime Board P. Pradeep, and representatives of the companies involved in the agreements.
Chief Minister Fadnavis said that several MoUs have been signed with different companies to develop the maritime ecosystem, involving investments worth approximately ₹56,000 crore. These agreements will help position Maharashtra at the forefront of maritime trade and development. Facilities related to ports, transport, industry, and commerce will be upgraded to global standards.
“Water transport is very important for Mumbai. The Ro-Ro ferry service has received an excellent response from citizens. Now, a water taxi service between Gateway of India and Navi Mumbai Airport will be launched, which will significantly reduce travel time. Additionally, a fleet of electric vessels (EV vessels) will be introduced to ensure clean and eco-friendly water transport.”
The state is developing water sports centers, shipbuilding industries, and blue economy projects. A major port is being established at Vadhavan, which will make Maharashtra a leader in the country’s maritime sector. The Vadhavan Port will be connected by road to key cities across the state, ensuring its benefits reach all regions of Maharashtra, the Chief Minister said.
Maharashtra Set to Become the Center of India’s Maritime Growth
— Minister of Fisheries and Ports Nitesh Rane
Minister Nitesh Rane said that this is a proud moment for Maharashtra. Due to the visionary leadership of Chief Minister Devendra Fadnavis, vast opportunities for growth have been created in the maritime sector. Maharashtra is emerging as a frontrunner in shipbuilding policy, passenger water transport, and marine tourism.
He added that Maharashtra will soon become the epicenter of the nation’s maritime development, and the MoUs signed today will give Maharashtra’s maritime industry global strength. A new chapter of investment in port development, shipbuilding, ship repair, and maritime transport has begun, he said.
Adani Ports and Special Economic Zone Ltd. — Development of Dighi Port and related infrastructure as a mega port; Investment: ₹42,500 crore.
JSW Infrastructure Ltd. — Expansion of existing Jaigad and Dharamtar ports; Investment: ₹3,709 crore.
Chowgule & Company Pvt. Ltd. — Shipbuilding, ship repair, rig repair, offshore and energy project development; Investment: ₹5,000 crore.
Synergy Shipbuilders & Dock Works Ltd. — Shipbuilding, ship repair, and ship recycling yard; Investment: ₹1,000 crore.
Goa Shipyard Ltd. — Shipbuilding, ship repair, and ship recycling yard; Investment: ₹2,000 crore.
Indian Institute of Technology (IIT) Bombay — Establishment of a Centre of Excellence for research and development in ship design and construction.
IIT Bombay — Development of training facilities in marine engineering and infrastructure.
IIT Bombay — Capacity building and skill development programs for Maharashtra Maritime Board employees.
Knowledge Marine & Engineering Works Ltd. — Shipbuilding and repair yard project; Investment: ₹250 crore.
TSA Enterprises Pvt. Ltd. — Development of Container Freight Station (CFS), shipyard, and flotel project at Vadhavan Port; Investment: ₹500 crore.
Candela Technology AB (Sweden) — Establishment of a shipyard for the construction of passenger water transport vessels.
Abu Dhabi Ports Group (UAE) — Agreement to enhance maritime cooperation between Maharashtra and the UAE.
Atal Turnkey Projects (Netherlands) — Agreement for maritime cooperation between Maharashtra and the Netherlands; Investment: ₹1,000 crore.
Echandia Marine AB — Establishment of a marine battery energy storage system assembly and manufacturing facility for tugboats; Investment: ₹10 crore.
Mumbai Port Authority — MoU for mutual cooperation to strengthen passenger water transport within the Mumbai Metropolitan Region (MMR).
Total Expected Investment: ₹55,969 crore
These MoUs will bring large-scale investment into port development, shipbuilding, marine research, and technical training in Maharashtra. Major projects such as Dighi Port and Vadhavan Port will enhance the state’s maritime trade capacity, while collaboration with IIT Bombay will promote innovation and skill development.
This initiative will create thousands of employment opportunities, attract new industries, and accelerate progress toward the Developed India 2047 vision.
Both central and state governments emphasized that these MoUs mark a significant step forward in strengthening India’s maritime future through joint efforts.
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