Economic Flux: India's Fiscal Moves and Market Reactions

The Union Cabinet has greenlit a substantial financial aid package of Rs 2,000 crore to the National Cooperative Development Corporation (NCDC) to bolster cooperative lending over the next four years. This decision is part of ongoing efforts to strengthen the cooperative sector throughout India.

Meanwhile, India's fiscal deficit reached 17.9% of the annual goal by the end of June, as reported by the Controller General of Accounts. Simultaneously, bank credit growth to industry decelerated to 5.5% in June, a significant drop from the previous year's 7.7%, according to Reserve Bank data.

The rupee recovered slightly against the US dollar, ending the day at 87.65, after its previous plunge to historic lows. This recovery was influenced by lower crude oil prices and potential interventions by the Reserve Bank of India amidst a volatile economic climate marked by US President Donald Trump's new tariffs on Indian imports and penalties for Russian crude oil purchases.

(With inputs from agencies.)