CLSA India's Gupta on Indian Inflation

The transcript discusses the Reserve Bank of India's (RBI) monetary policy, including maintaining an accommodative stance while withdrawing surplus liquidity. It predicts a rate hike in the next fiscal year. The impact of low interest rates and oil prices on investment and demand is analyzed, along with the rural economy's recovery post-COVID. Government spending's role in economic growth is examined, with a focus on future growth drivers like low lending rates. Concerns about high valuations in Indian equity markets are also addressed.

What are the expected trends in inflation and growth over the next two years?

How might the rural economy perform in the context of a good harvest?

What role does the RBI's effect reserves play in India's economic stability?