Business
India’s CPI inflation declines to 8-year low of 1.54 pc in September
New Delhi, Oct 13: India’s inflation rate based on the Consumer Price Index (CPI) declined to an over 8-year low of 1.54 per cent in September this year, compared to the same month of the previous year, as prices of food items and fuels turned cheaper during the month, according to figures released by the Ministry of Statistics on Monday.
This is the lowest year-on-year inflation after June 2017, and is also lower than the inflation rate of 2.05 per cent for August.
Food inflation continued in the negative zone for the fourth consecutive month and was recorded at -2.28 per cent during September, the figures showed.
“The decline in headline inflation and food inflation during September is mainly attributed to a favourable base effect and the decline in inflation of vegetables, edible oils, fruits, pulses, cereals and egg. Besides, fuels also turned cheaper during the month,” the official statement said.
The inflation outlook for 2025-26 has become more benign due to large favourable base effects combined with the good southwest monsoon, healthy kharif sowing, adequate reservoir levels and comfortable buffer stocks of foodgrains. The GST rate cuts, which kicked in on September 22, are bringing down prices across goods which will result in reducing inflation further in the coming months.
The decline in the inflation rate gives the RBI more headroom to continue with a soft money policy by cutting interest rates and injecting more money into the economy to spur growth.
The RBI’s monetary policy committee (MPC) on October 1 slashed its forecast for India’s inflation rate for the financial year 2025-26 to 2.6 per cent from 3.1 per cent in August primarily on account of the GST rate cuts and benign food prices.
RBI Governor Sanjay Malhotra said, “The recently implemented GST rate rationalisation would lead to a reduction in prices of several items in the CPI basket. Overall, the inflation outcome is likely to be softer than what was projected in the August monetary policy committee resolution, primarily on account of the GST rate cuts and benign food prices.”
Addressing journalists after the MPC meeting, Malhotra said that the “overall inflation outlook has turned even more benign in the last few months.”
The RBI Governor pointed out that headline CPI inflation declined to its eight-year low of 1.6 per cent year-on-year in July 2025 before rising to 2.1 per cent in August – its first increase after nine months. Benign inflation conditions during 2025-26 so far have been primarily driven by a sharp decline in food inflation from its peak of October 2024.
Inflation within the fuel group moved in a narrow range of 2.4-2.7 per cent during June-August. Core inflation remained largely contained at 4.2 per cent in August. Excluding precious metals, core inflation was at 3.0 per cent in August.
The RBI Governor further stated that the current macroeconomic conditions and the outlook has opened up policy space for further supporting growth.
Business
Indian Railways launches online excess luggage booking with ticket reservations

New Delhi, July 31: Passengers travelling by train can now book and pay for excess luggage online while reserving their tickets, as Indian Railways on Friday rolled out a new digital facility aimed at making the travel process more convenient.
The service integrates excess luggage booking with the online ticket reservation system, eliminating the need for passengers to visit parcel offices separately before boarding.
Previously, travellers carrying baggage beyond the free allowance had to complete a separate booking process at railway parcel counters, often leading to additional paperwork and long queues.
The online excess luggage booking facility is available only to passengers holding confirmed tickets and is restricted to travel classes where carrying luggage beyond the free allowance is permitted upon payment of the prescribed charges.
Passengers travelling in AC First Class, AC 2-Tier, First Class, Sleeper Class and Second Class can avail of the service.
However, those travelling in AC 3-Tier and AC Chair Car will not be eligible, as the maximum permissible baggage limit in these classes is the same as the free luggage allowance.
Under the existing baggage rules, AC First Class passengers are entitled to carry up to 70 kg free of charge and can carry a maximum of 150 kg after paying excess luggage charges.
Passengers in AC 2-Tier and First Class are allowed 50 kg free, with a maximum permissible limit of 100 kg.
Sleeper Class passengers can carry 40 kg free and up to 80 kg in total, while Second Class passengers have a free allowance of 35 kg and a maximum limit of 70 kg.
In contrast, AC 3-Tier and AC Chair Car passengers can carry up to 40 kg, which also serves as the maximum permissible limit.
Indian Railways has clarified that passengers carrying baggage beyond the free allowance but within the prescribed maximum limits will be required to pay applicable excess luggage charges.
Apart from weight restrictions, the Railways also enforces size limits for luggage carried inside passenger coaches.
Trunks, suitcases and boxes measuring up to 100 cm × 60 cm × 25 cm are generally permitted inside compartments.
However, passengers travelling in AC 3-Tier and AC Chair Car coaches must adhere to a smaller size limit of 55 cm × 45 cm × 22.5 cm.
Business
IBM partners Sarvam to strengthen India’s sovereign AI ecosystem

New Delhi, July 31: IBM and homegrown AI startup Sarvam have partnered to accelerate the development and adoption of sovereign artificial intelligence (AI) technologies in India, with a focus on government agencies, public sector organisations and regulated enterprises, according to a statement on Friday.
Under the partnership, the two companies will jointly demonstrate and pilot sovereign AI technologies for use cases such as citizen services, grievance redressal, document processing and administrative workflows.
The collaboration combines IBM Sovereign Core, the company’s sovereign-by-design AI software platform, with Sarvam’s India-first sovereign AI stack, which includes reasoning models and multilingual language and voice AI developed and trained in India.
The combined offering is designed to help organisations deploy AI while maintaining greater control over data, governance, security and compliance in line with India’s regulatory and operational requirements.
In addition, the initiative aims to accelerate sovereign AI adoption through innovation pilots, solution accelerators, technical advisory services and knowledge-sharing programmes.
The IBM GovTech AI Innovation Center in Lucknow will serve as a joint incubation and demonstration hub where government departments, public sector organisations and enterprises can evaluate practical sovereign AI applications and address technical, operational and governance requirements before scaling deployments.
“Sovereign AI is not simply about where AI runs. It is about giving organisations control over how AI is governed, deployed and operated,” said Sriram Raghavan, General Manager, IBM Software, India and Software Innovation Lab.
He said IBM Sovereign Core provides an enterprise-grade platform designed to help governments and regulated enterprises scale AI while addressing governance, security and compliance requirements.
Pratyush Kumar, Co-Founder of Sarvam, said sovereign AI must work within the systems governments and enterprises already rely on while supporting large-scale operations.
“Our stack puts models, voice and language technologies on top of it, so a citizen can access a benefit or resolve a grievance in their own language, on a phone call,” Kumar said.
Business
Markets open subdued as IT, pharma stocks offset banking weakness

Mumbai, July 30: Domestic equity benchmarks opened on a subdued note on Thursday amid mixed global cues, as gains in information technology and pharma stocks were offset by weakness in banking and realty shares.
Sensex opened at 77,638.86, down 15.74 points or 0.02 per cent, while Nifty opened at 24,249.55, lower by 0.65 points.
Among the sectoral indices, Nifty IT was the top gainer, rising 1.39 per cent, followed by Nifty Pharma, Nifty Healthcare, Nifty MidSmall IT & Telecom, and Nifty Auto, which gained up to 0.54 per cent.
In contrast, Nifty Realty declined 0.80 per cent, followed by Nifty Chemicals, which was down 0.45 per cent, while Nifty Private Bank fell 0.42 per cent.
According to market experts, the Indian market continues to indicate a potential breakout trend, although several global headwinds are limiting the upside momentum.
“The spike in Brent crude prices to near $90 following the escalation of the US-Iran conflict is a strong headwind for markets,” they said.
Experts noted that the US Federal Reserve’s decision to keep interest rates unchanged, though widely expected, turned out to be negative for equities as the decision was split 9-3, with three members voting for a rate hike to curb inflation.
However, they believe the Indian market could remain relatively resilient.
Weakness in global chip stocks has prompted foreign portfolio investors (FPIs) to shift allocations, with FPIs turning net buyers in Indian equities so far in July.
Brent crude — the international oil benchmark — declined 1.75 per cent to $89.15 per barrel, while US West Texas Intermediate (WTI) crude fell 1.47 per cent to $83.21 per barrel.
Asian stocks traded mixed. Major indices such as the Nikkei, Hang Seng, and KOSPI were up 0.72 per cent, down 0.02 per cent, and lower by 0.57 per cent, respectively.
US stocks ended lower, with the S&P 500 declining 1.52 per cent, while the Nasdaq ended down 1.74 per cent.
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