May 17, 2025
3 min read
India Inflation Drops April 2025 – Weekly Capsule

Finnovate Weekly Capsule (May 12 – 17, 2025)

What Happened This Week?

Here’s a simple breakdown of the major economic and business events that took place during the week, and what they might mean for you and your money.

1. India’s Inflation Drops to a 69-Month Low

  • Consumer inflation (CPI) eased to 3.16% in April 2025, largely because food prices came down.
  • Vegetables are getting cheaper for the third month in a row – good news for your kitchen budget!

2. Wholesale Prices (WPI) Also Softened

  • WPI dropped to 0.85%, helped by a strong base effect and falling food prices.
  • Manufacturing costs dipped slightly too – a sign that goods might not get more expensive soon.

3. RBI Likely to Cut Rates Again in June

  • With inflation below 4%, the RBI might lower interest rates to support job growth and business activity.
  • This could mean lower EMIs if you’re planning a loan or have one running.

4. US Inflation Eases, But Rate Cuts May Wait

  • Consumer inflation in the US is down to 2.3%, though the Fed may not cut rates until September.

5. India’s Trade Deficit Widens in April

  • The gap between exports and imports hit $26.42 billion due to a jump in imports.
  • Services could only cover about two-thirds of this deficit.

6. Forex Reserves Rise to $691 Billion

  • Helped by rising gold prices, India’s foreign exchange stockpile grew.

7. Moody’s Downgrades US Debt Rating

  • The US is now rated AA1 instead of AAA due to rising debt and political gridlock.

8. Vodafone Idea Says It May Not Survive Beyond FY26

  • Despite big investments, the company is still in trouble and banks are hesitant to lend more.

9. US Plans 5% Tax on NRI Remittances

  • If approved, this could affect Indians sending money home from the US.

10. Shapoorji Pallonji Raises $3.4 Billion at 19.75%

  • The high interest rate shows how tough borrowing is, even for big companies.

11. Swiggy Shuts Down Genie, Uber Steps In

  • Uber Courier is now filling the gap left by Swiggy’s hyperlocal delivery shutdown.

12. Sugar Output Drops Due to Poor Rainfall and Crop Disease

  • Despite a 5-year low in production, there’s enough to meet domestic and ethanol demand.

13. Gold Prices Fall by 10%

  • Gold is now around ₹91,250 per 10 grams, down from the ₹1 lakh mark.

14. JSW Paints Buys Akzo Nobel’s Paints Business

  • The ₹12,000 crore deal makes JSW the fourth largest in India’s paints market.

15. Groww to Acquire Fisdom Before IPO

  • This boosts Groww’s position ahead of its public listing, expected to value it at $8 billion.

16. RBI Boosts Gold Holdings in Reserves

  • Now 12.5% of forex reserves are in gold, seen as a safer bet than foreign currencies.

17. Gold Loan Firms Worry Over New RBI Norms

  • New rules could limit how much people can borrow against gold, affecting their profits.

18. Coromandel & Nykaa Enter MSCI India Index

  • This could bring in foreign fund flows of over $450 million combined.

19. Reliance to Sell Stake in Asian Paints

  • Expected to gain ₹10,000 crore from a ₹500 crore investment made in 2008.

20. Promoter Holding Hits 7-Year Low

  • Experts see this as cashing in at higher levels, with plans to reinvest later.

21. US-China Trade Truce for 90 Days

  • Both nations have agreed to lower tariffs temporarily to control rising costs.
Disclaimer: This newsletter is for information purposes only. It is not financial advice. Always check with a trusted expert before making any financial decisions.
Published At: May 17, 2025 04:35 pm
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