Prime Minister Narendra Modi's meeting with economists focused on boosting rural infrastructure, development of PM Kisan Scheme model and water resources, said Soumya Kanti Ghosh, group chief economic advisor at State Bank of India.
PM Modi on Saturday discussed key issues facing economy and suggestions to meet challenges with top 40 economists of the country as the government prepared to present the first full budget of the NDA 2 next week.
"The larger part of the discussion was water resources because water is going to be a big issue in the next 4-5 years given that there has been significant depletion in water reserves,” said Ghosh
“Inflation is constantly surprising on the downside and from that point of view the market has already priced in dovish stance from the central bank,” he added
On rate cut front, he said, “We are factoring in another rate cut in August and beyond August also, we believe, there is a possibility of rate cuts and given the fact that the RBI is now flexible on the real interest rate, given the fact the inflation average for full year could be between 3.5 percent to 4 percent, so there will be space for more rate cut even after August in terms of real rate conundrum.”