India's exports shrank in January for the 14th straight month on continued weak demand from Europe
The rupee had gained seven paise to close at 61.15 on Friday on suspected RBI intervention in the forex market.
RBI projects GDP growth in FY16 at 7.8 per cent, 30 bps higher than FY15. However, this comes with a downward bias.
Will the government now push to move away from what Mr Rajan has been doing in the last few years?
The rupee's strength against its competitor could come to haunt exporters.
The RBI governor believes corruption ca be fought by streamlining the system.
It has already cut the rate three times this year to loosen credit and boost slowing growth in Asia's third-largest economy.
Official GDP data for the second quarter of the current fiscal year ending March are due to for release this Friday.
HSBC PMI falls to 50.7, slow domestic demand offsets pick up from abroad.
A Reuters poll showed only one out of 51 economists had expected a 50 basis points rate cut.
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