India’s GST collection surged by 16.4% in May, driven by a significant increase in GST from imports, reaching a three-year high. Nomura anticipates a moderation in India’s GDP growth to 6.2% in FY26. The robust GST collections contrast with softer trends in other high-frequency growth indicators, warranting close monitoring.
Banks unlikely to reduce deposit rates despite RBI easing
Following the latest repo rate decrease, bankers foresee only slight adjustments to deposit rates. The landscape, characterized by sluggish savings yields and elevated credit-deposit ratios,