Economic Shifts: Inflation Dips, Markets Surge, and Trade Balances

Retail and wholesale inflation in India have decreased, revitalizing hopes for upcoming rate cuts by the RBI. Export levels slightly rose, but trade deficit widened. Markets surged with global trends while the rupee strengthened against the dollar. Gold reached an all-time high, and India anticipates significant trade discussions with the US.

In March, India's retail inflation dropped to its lowest in nearly six years, reaching 3.34%, driven mostly by reduced food prices. This decline raises expectations for a potential rate cut from the Reserve Bank of India, which aims to maintain inflation below a 4% target.

Wholesale inflation also saw a decrease, reaching 2.05% as food items including vegetables and potatoes became cheaper, as per recent government data. Meanwhile, India's exports had a marginal boost of 0.7% increasing to USD 41.97 billion in March, though the trade deficit widened to USD 21.54 billion.

Reflecting a global market rally, India's equity indices surged over 2%, buoyed by US President Trump's tariff policy adjustments on electronics. Concurrently, the Indian rupee gained 30 paise against the US dollar amid ongoing global uncertainties.

(With inputs from agencies.)