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• The Reserve Bank of India (RBI) has cut the repo rate by 25 basis points to 6%, a relief for India’s business community.

• Exporting sectors have been urging the government to expedite bilateral trade negotiations with the U.S. to avoid Trump’s “reciprocal” tariffs.

• The pause in tariffs, except for the 10% universal tariff, suggests a strategy to mitigate the sell-off of U.S. treasury bonds and the damage to American stock valuations.

• The RBI’s stance has changed from “neutral” to “accommodative,” indicating potential further rate cuts.

• The rate reduction is expected to result in loan service reductions for businesses, homeowners, and retail borrowers.

• The RBI’s lowered GDP growth estimates for the current fiscal suggest a growth contraction due to the uncertain economic climate.

• The principle of stable governance and predictable policy framework is emphasized, but China’s retaliatory tariffs signal the start of a full-blown trade war.

• The lesson for nations is that protecting one’s own economy can be achieved without harming others, as long as countries recognize their competitive advantages and build on them.