The ₹46,000-cr. hub faces testing times with thinning margins, declining overseas demand and relatively high labour costs.
In line with market expectations, the monetary policy committee (MPC) decided to reduce the benchmark repo rate by 25 basis points last week, to 6 per cent (Chart 1).
KOLKATA: Despite the recent sluggishness in demand, India remains an attractive consumption-oriented market with the growth of the middle class and rising disposable income.
The local unit, however, pared some losses and was quoted at 69.50 against the American currency at 0933 hrs.
Banks and companies will finally get some clarity over the stressed assets troubles, as the Reserve Bank of India (RBI) is set to discuss the contents of the revised circular this week with the finance ministry. RBI is also considering seeking permission from the election commission to issue it soon.
Indian rupee today weakened marginally against US dollar, tracking losses in other Asian currencies as traders awaited further details on a possible US-China trade deal.