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Best of BS Opinion: Economic shifts, environmental hopes, policy crossroads
Here are the best of Business Standard's opinion pieces for today
Abhijeet Kumar New Delhi
In a significant move to stimulate economic growth, the Reserve Bank of India's Monetary Policy Committee reduced the policy repo rate by 50 basis points to 5.5 per cent and the cash reserve ratio by 100 basis points in phased stages, injecting ₹2.5 trillion into the banking system. While inflation eased to 3.2 per cent in April, the MPC shifted its stance from 'accommodative' to 'neutral,' indicating limited room for future rate cuts. The GDP forecast remains at 6.5 per cent, but the RBI stressed that achieving higher long-term growth would require structural reforms beyond monetary tools.
Launched on World Environment Day, the Aravalli Green Wall Project aims to restore 700 km of degraded terrain across four states. Inspired by Africa's Great Green Wall, the plan involves reviving native flora and water bodies to enhance India's carbon sink. However, challenges remain due to ongoing illegal mining and encroachments. As our second editorial highlights, without stronger governance and interstate coordination, experts warn the project could falter, repeating past mistakes seen in the Western Ghats conservation efforts.
In his column, Ajay Shah writes that India's economic prospects depend not just on rate cuts but on five strategic levers: trade liberalisation, soft monetary policy, structural reform, capital account liberalisation, and a weaker rupee. He notes that weak private investment and capital controls have stifled India's global competitiveness. While India benefits from geopolitical realignments like the China+1 shift, FDI inflows remain low. Trade deals with the UK and potential pacts with the US and EU offer an opportunity, but without bold reform, India risks falling short.
Meanwhile, Sunita Narain cautions that India's EV transition is progressing too slowly to meet its climate and urban mobility goals. While electric three-wheelers show growth, adoption in other segments lags, and urban congestion worsens. She stresses that counting electric vehicles is not enough, cities must expand public transport, reduce private vehicle use, and align EV policy with air quality and mobility planning.
Finally, Ted Widmer reviews John Hancock: First to Sign, First to Invest in America's Independence by Willard Sterne Randall, a biography that revives the legacy of the often-overlooked Founding Father. The book underscores Hancock's role in financing and steering the revolution, while also exploring the complexities surrounding his political and social legacy.
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Economic Times
an hour ago
- Economic Times
India bond yields extend rise as market digests RBI stance shift
Indian government bond yields experienced a rise early on Monday. This increase followed the Reserve Bank of India's recent policy shift to neutral. Indian government bond yields experienced an increase in early trading on Monday as investors assessed the Reserve Bank of India's unexpected shift to a neutral policy stance. This followed a larger-than-anticipated rate cut. Traders anticipate caution to prevail, with potential for recovery in the coming days. The RBI's decision and liquidity measures are influencing market expectations for future rate adjustments. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Indian government bond yields rose in early trade on Monday as investors weighed the central bank's surprise shift last week to a neutral policy stance, following a larger-than-expected rate cut The benchmark 10-year yield was at 6.2591% as of 10:00 a.m. IST, up from Friday's close of 6.2373%, while the five-year 6.75% 2029 bond was at 5.8344%, compared with 5.8150% previously."For the day, we expect some caution to prevail, but if the upside is capped, then we can see some recovery in the coming days," a trader at a private bank Reserve Bank of India (RBI) delivered a larger-than-expected 50-basis point (bp) rate cut on Friday, its steepest in five years, but changed its policy stance to "neutral" from "accommodative", stating that it may have limited space for further Governor Sanjay Malhotra said, after having cut rate by 100 bps, under the present circumstances, monetary policy is now left with very limited space to support central bank also announced a cut in banks' cash reserve ratio by 100 bps to 3%, adding to already surplus liquidity. J.P. Morgan Chase now expects 5.50% to be the terminal repo rate, against its earlier prediction of 5.00%.The RBI may keep rates on hold until at least the end of this fiscal year, a snap Reuters poll of economists found after Friday's Nomura is anticipating the RBI to cut rates by 25 bps each in October and December as growth and inflation are expected to undershoot targets. RATESThe shorter duration overnight index swap (OIS) rate was witnessing some downward move amid receiving interest, while other swaps were flat to one-year OIS rate was 2 basis points down at 5.46%, while the two-year OIS rate was little changed at 5.44%, and the most liquid five-year was higher at 5.69%.
Time of India
2 hours ago
- Time of India
Crorepati house! EMIs on Rs 1 crore home loan may drop to Rs 68,000 after RBI's 50 bps rate cut
In a move that could redefine the trajectory of India's housing market, the Reserve Bank of India ( RBI ) slashed the repo rate by 50 basis points (bps) during its June 2025 monetary policy meeting, bringing it down to 5.5%—a level not seen in over three years. The central bank's decision signals a clear shift toward a more accommodative stance in response to easing inflation and the need to stimulate demand across sectors. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Kulkas yang belum Terjual dengan Harga Termurah (Lihat harga) Cari Sekarang Undo Among the biggest beneficiaries of this rate cut are home loan borrowers, both existing and prospective. The cost of borrowing is set to come down, leading to lower Equated Monthly Instalments (EMIs) or shorter loan tenures. For a country where housing affordability has long been a challenge—particularly in the affordable and mid-income segments—this rate cut may prove to be a turning point. The RBI's move is also expected to inject a fresh wave of optimism in India's real estate market, especially after a prolonged period of cautious lending, fluctuating interest rates, and high input costs. Live Events As per market experts, the cut in the repo rate—combined with a 100 bps cut in the Cash Reserve Ratio ( CRR )—will lead to more liquidity in the banking system, thus enhancing banks' ability to lend more aggressively. With the repo rate now at 5.5%, home loan interest rates are expected to fall significantly. For high-credit-score borrowers, the new rates could hover around 7.5%, compared to earlier rates of 8.25% or more. This means that for a home loan of ₹1 crore, monthly EMIs could drop to Rs 68,000–Rs 70,000, depending on tenure and loan structure, suggest experts. Ankit Shah, COO and CMO of Grahm Realty, calls this a transformative step: 'The reduction to 5.5% is a much-needed and welcome move. After years of volatility, we are entering a more stable phase". "For aspiring homebuyers—especially first-timers—this is a golden window. Where rates previously started at around 8.25%, they could now begin at approximately 7.5%, especially for borrowers with strong credit scores," he said. "This shift means a notable decrease in monthly EMIs. For instance, on a home loan of ₹1 crore, EMIs may now fall in the range of ₹68,000 - ₹70,000, making homeownership far more accessible," added Shah. Also Read: Rs 7.71 lakh savings on Rs 50 lakh home loan: Check how much you will save after RBI's 50 bps repo rate cut Also Read : Rs 7.71 lakh savings on Rs 50 lakh home loan: Check how much you will save after RBI's 50 bps repo rate cut Twin Benefits: Lower EMIs and Ample Liquidity Beyond just cheaper EMIs, the RBI's simultaneous 100 bps CRR cut is expected to infuse Rs 2.5 lakh crore into the banking system. This provides banks with more capital to lend, potentially easing loan disbursal processes and increasing competition among lenders to offer lower rates. Maanu Dewan and Raunaq Arora, Founders of Ace Consulting, say: 'Lower interest rates mean reduced home loan EMIs—directly improving affordability for buyers and stimulating demand in both primary and resale segments'. 'This move comes at a perfect time as premium and luxury housing sees renewed interest. Expect stronger momentum in residential sales in the coming quarters,' he said. Affordable Housing Gets a Much-Needed Push While premium and luxury housing bounced back strongly in the post-COVID era, affordable housing lagged. According to ANAROCK Property Consultants, the affordable segment's share of total sales dropped from 38% in 2019 to just 18% in 2024. Similarly, new launches in this segment also fell, making it one of the most under-served markets in the country. Anuj Puri, Chairman of ANAROCK Group, sees the current move as a potential revival point. 'This is the third consecutive time this year that the apex bank has cut the repo rates. It is sincerely hoped that banks pass on the benefits of this move seamlessly to borrowers,' he said. 'This effectively lowers the cost of borrowing, making home loan EMIs easier on the pocket and thereby directly improving affordability for buyers. However, he also warns of headwinds from global trade tensions and rising construction costs,' highlighted Puri. Lower Segments Could See Renewed Momentum The RBI's decision is also seen as a much-needed correction to an increasingly top-heavy housing market. Shishir Baijal, Chairman and Managing Director, Knight Frank India , highlights: 'Over the last few years, the strong housing market momentum was increasingly concentrating in the premium end even as there were signals of weakening the lower segments.' 'With this cumulative 100 basis point cut in the policy interest rate we expect rekindling of the lower segments as affordability will witness a meaningful improvement for such homebuyers,' he said. Baijal stresses the importance of greater transmission of the rate cut from banks to consumers, and a focused supply-side response from developers to ensure momentum sustains. Momentum in Tier 2 & Tier 3 Cities Perhaps the most significant beneficiaries of the rate cut could be Tier 2 and Tier 3 cities, where affordability, job creation, and infrastructural growth are interlinked. Amit Mamgain, Director at Yugen Infra , notes: 'a home loan with an interest rate below 7.75% will bring affordability within reach for homebuyers, especially in the mid-income and affordable housing sectors, which are highly sensitive to the rate offered'. He believes that this decision will further promote the Government's housing-for-all mission and accelerate momentum in Tier 2 and Tier 3 cities, where demand is primarily determined by lending costs. Conclusion: A Policy-Driven Housing Revival? The RBI's 50 bps repo rate cut has the potential to revive demand, ease borrower stress, and reinvigorate housing supply—especially in the affordable and mid-income segments that have long been waiting on the sidelines. 'Residential real estate closed FY2025 with 1 bn sq. ft of sales, down 3% yoy, largely impacted by Hyderabad, which saw a 33% yoy decline,' Kotak Institutional Equities said in a June 2025 note. 'Valuations for most residential real estate stocks stand at 7-10X adj. EV/ EBITDA (FY2026E) post some recovery in the stock prices,' the note said. Most developers have guided for double-digit pre-sales growth (~20% yoy in FY2026E for our coverage), aided by industry growth and market share gains. If banks move swiftly to pass on the benefits and developers respond with buyer-friendly offerings, India's housing sector could be on the cusp of a broad-based revival. While challenges like global macroeconomic uncertainty and rising input costs persist, the central bank's latest decision sends a clear message: it is time to make homeownership more accessible, inclusive, and affordable. ( Disclaimer : Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
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Business Standard
2 hours ago
- Business Standard
China's exports up 4.8% in May as shipments to US fall nearly 10%
Imports declined 3.4 per cent year-on-year, leaving a trade surplus of $103.2 billion AP Beijing China's exports rose 4.8 per cent in May from a year earlier, lower than expected as shipments to the United States fell nearly 10 per cent, according to customs figures released on Monday. Imports declined 3.4 per cent year-on-year, leaving a trade surplus of $103.2 billion. China exported $28.8 billion to the United States in May, while its imports from the US fell 7.4 per cent to $10.8 billion, the report said. Trade slowed in May after China's global exports jumped 8.1 per cent in April, even after US President Donald Trump struck a deal with Beijing to delay implementation of stiff tariff hikes to allow time for talks. The next round of US-China talks was due to take place later Monday in Britain. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
