The monetary authority said it was worried on three fronts with regard to inflation as well as the economy.
The higher than expected growth in the second quarter of 2013-14 is an indication of recovery in economy but some key sectors still need to perform better, India Inc said on Friday.
RBI has brought down forecasts of both year-end inflation and growth.
Disagreeing with Reserve Bank's projection on the price situation, former RBI Governor and PM's Economic Advisory Council chairman C Rangarajan said WPI and CPI may not be as high as being projected by the central bank.
FPIs, which are holding large exposures in Indian debt, could also be expected to book some capital gains as yields slide down
Addressing bankers and economists at Bancon 2013, a flagship event of the Indian Banks' Association, Chidambaram told the lenders to deal firmly with wilful defaulters, but handhold those who are reeling under the impact of the economic slowdown.
Dismissing the contention that the decline in inflation was on account of the steps taken by the NDA government, Chidambaram said he wanted to know, 'what measures were taken by the government that contributed to decline in inflation rates.'
As it stands, there does not seem to be a threat to prices.
'Retail investors have been selling since the Budget and Foreign Portfolio Investors started selling.' 'Thus far, domestic institutions have picked up the slack, buying enough to keep the major indices from falling off a cliff.' 'However, there has been carnage in smaller stocks and the financial sector has been hit much harder than the major market indices,' points out Devangshu Datta.
The statement said the food inflation stood at 7.56 per cent in February, 2014, against 8.94 per cent of the previous month and 14.98 per cent during the corresponding month of the previous year.
The manufacturing sector, which accounts for over 75 per cent of the index, declined by 2.4 per cent against a growth of 4.1 per cent in December 2014.
There is a significant amount of dispersion in the growth rates across different industries.
The government's subsidy bill towards oil, fertilisers runs into lakhs of crores of rupees.
Industry bodies called for implementation of measures announced in the Budget to arrest inflation, saying these would pave the way for a stable inflation regime.
Earnings growth is unlikely to see much recovery and sales revenues are also likely to remain muted
The Analysis lists a number of steps taken by the government that have contributed to both positive short-term outcomes, such as lower food inflation, and the capacity for more equitable growth, through financial inclusion.
States need to create alternative marketing structures for farm produce since middlemen also provide vital services that are otherwise unavailable to the farmer.
The industry has stepped up its demand for a rate cut
The government seemed unhappy with Raghuram Rajan's interest rate policy.
This is a formidable task which the Centre may find hard to shoulder without substantial involvement of the states.
India Inc has pitched for rate cut to boost economic activities.
Experts feel oil prices will remain volatile with an upward bias.
Costlier onion and other vegetables pushed up inflation for the third month in a row to 6.1 per cent in August, making it difficult for the RBI to cut rate in the monetary policy review due later this week.
'It is only fear and speculation, without much substance, that has led to the fall.'
India must do away with policy paralysis to ensure growth in agriculture.
This development can strengthen the case for interest rate cut by the RBI.
'I have never seen anybody disliked more as prime minister than Modi.' 'What is interesting is in his prime ministership, no matter whatever happens in any corner of India, Modi is blamed for it.' 'Modi has not suspended any Constitutional liberties. No Opposition leader has been put in jail... Modi is not Hitler.'
It is the six per cent target RBI is more concerned about.
Lack of political consensus on economic reforms a key concern.
ICICI Bank was the top gainer after stable rating for its senior unsecured bonds by S&P Global Ratings.
The US FOMC concludes its two-day meeting today while the Bank of Japan will start its two-day meeting today.
Also says PSU banks divestment to be considered after improvement in governance
Prime Minister's key economic advisor C Rangarajan on Friday lowered the growth forecast for the current fiscal to 5.3 per cent from 6.4 per cent projected earlier and listed out host of measures including further liberalisation of foreign direct investment norms to improve economic condition.
Markets have gone into a tailspin, the Modi govt must revive investment sentiment.
More important is to diversify the country's farm production base.
A good monsoon would translate into demand pickup across multiple sectors.
The Reserve Bank of India (RBI) will make its bi-monthly policy announcement next week. The macroeconomic backdrop to this event is perhaps the most reassuring in the past several quarters.
Top gainers from the Sensex pack are Infosys, Cipla, NTPC, ITC and Lupin
The rise in food inflation was on account of increase in prices of onions, vegetables, cereals and protein-based items.
In a pre-budget meeting with Finance Minister Arun Jaitley, the experts suggested timely implementation of the BJP's election manifesto promises to fix higher support prices. They also favoured a Kissan TV channel, an efficient procurement policy, priority for farm mechanisation and the linking of rivers.
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