Policymakers lower the benchmark repo rate by half a percentage point to 5.5 per cent as fears over inflation ease

India's economy expanded at a faster-than-expected annual rate of 7.4% in the quarter ended in March. That marked the country's strongest quarterly growth in the fiscal year of 2025. New Delhi could be next in line to clinch a trade deal with the U.S., following Washington's agreements with China and the U.K.

The lone economist who predicted the Reserve Bank of India’s out-sized interest rate cut on Friday expects another smaller reduction before the central bank hits a pause.