Falling growth, inflation and lower fiscal deficit are expected to prompt RBI to cut rates.
During deleveraging the income falls more than reduction in debt due to the austerity measures.
Some term it as "good for capital market", while others saying it is not "market friendly".
The 3-month, 6-month and 12-month USD-rupee forecasts are 55, 53 and 52 respectively.
Fiscal deficit planned to reduce to 4.8 per cent in FY2014, subsidy bill remains elevated. Proposes to reduce fiscal deficit to 3%, the revenue deficit to 1.5 per cent and the effective revenue deficit to zero by FY2017.
Supported by slightly stronger global growth, improving export competitiveness and implementation of recently approved investment projects, India's growth is expected to recover from 4.4 per cent in 2013 to 5.4 per cent in 2014, the IMF said.
Industry houses are emphatic with the RBI pruning repo rate and CRR by 0.25 per cent each after a long nine months in its third quarter monetary policy review.
At his pre-Budget consultations with Finance Ministers of states, he is understood to have said that it was time to wrap up lose ends on GST.
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This increases expectations that RBI may cut rates later this month.
Before Budget, departments see outlays shaved.
The Budget would preserve macro-economic stability.
In an interview to Business Standard, Rangarajan says CAD will be brought under control at around two per cent of the gross domestic product.
Reddy has worked to reform the economy.
Total subsidy bill could come down to around Rs 2 trillion.
Forex dealers said besides dollar's gain against the euro in the overseas markets, increased demand for the American currency from importers and a lower opening in the stock market put pressure on the domestic currency.
Inflation is likely to drop to 5.4 per cent in FY 2014.
If oil prices rise, the government would face an uncomfortable political decision.
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Union Budget had projected the fiscal deficit at Rs 5.56 lakh crore.
Rajan strongly defends RBI's decision to hold the key rates in the absence of any new data points.
FM he did not come down hard on Rajan to cut rates
The growth will be driven by favourable external demand and domestic structural reforms push.
The US election results were in line with expectations and the markets were not surprised.
In his statement, Obama is expected to discuss the tax increases and spending cuts that are set to take effect in January, and will likely urge Congress to take action on both.
An effort by President Barack Obama played a key role in returning him to the White House for another stint.
The 30-share Sensex jumped 729 points to end at 28,076 and the 50-share Nifty soared 217 points to end at 8,494.
The RBI cited lower-than-expected inflation, weak crude prices and weak demand, as well as the government's commitment to sticking to a fiscal deficit target as reasons.
India's gross domestic product growth has been on a steady decline since June 2011, when it stood at 8 per cent.
The real benefits can be seen when prices stabilise, preferably at levels acceptable to both consumers and producers.
The profitability of industry is under stress and needs to be addressed by encouraging investments in the supply side infrastructure.
Showing concerns over hardening inflation, the Reserve Bank today left the key interest rate unchanged but reduced cash reserve ratio by 0.25 per cent to inject Rs 17,500 crore (Rs 175 billion) liquidity into the financial system.
Reserve Bank Governor D Subbarao will, however, not touch the policy rate or the repo, rate at which RBI lends to banks, on October 30 when he unveils the half-yearly monetary policy because headline inflation continues to be elevated at 7-7.5 per cent, the agency said.
High inflation continues to be an obstacle in lowering policy rates as of now.
Govt clamps have resulted in 93% decline in April-November
The Kelkar Committee has recommended sharp reduction in subsidies on petroleum, food and fertiliser, which the government said was contrary to its policy of protecting the poor.
Currently trading at the 53-level against the US dollar, the rupee has depreciated as much as 25 per cent in the last one year, amid sluggish economic trends.
According to Barclays Capital, the government's decision to lower the withholding tax on foreign borrowings could produce an additional $2 billion per year inflow in the medium term -- a material sum against annual balance of payments forecasts (around $15 billion deficit).
The government would take a hit of about Rs 6,000 crore (Rs 60 billion) this year if it rolls back the excise duty of Rs 1.5 per litre on diesel it levied last week.
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