US Feds

US Fed Rate Cut: India's Startups to Benefit from Easier Funding and So Will Textile and Automotive Industry

The highly anticipated US Fed's rate cut is now out. The US Fed has come up with a 50-basis-point rate cut that has already sent ripples through the market. After the rate cut the Sensex surged over 700 points and the Nifty index breached the 25,500 mark. From this announcement, the biggest profiteering sectors came out to be Banking and IT stocks, marking the highest new records.

In a statement given at the Deloitte event, Chief Economic Advisor to the Government of India, V. Anantha Nageswaran shared his insights on the Federal Reserve's latest rate cut. While acknowledging its potential to boost the global economy, he tempered expectations for India, citing a marginal impact.

However, since the rate cut, Nageswaran has assessed that India's economic growth will not be significantly influenced by the rate cut. Echoing the same sentiment, Economic Affairs Secretary of India, Ajay Seth stated that investment flows into India are unlikely to be affected.

Now, V. Anantha Nageswaran’s cautious optimism has lifted the spirits of the Indian economy. It is now being suggested that global economic fluctuations will not dampen India's external finances and financial stability as vulnerabilities lay low.

Amid the rate cut, the Reserve Bank of India (RBI) has maintained its policy rate at 6.5% for four consecutive times, indicating a commitment to tight monetary policy.