From RBI’s bold monetary moves to dynamic startup funding, here’s how India’s economy, technology, and entrepreneurial landscape shaped up last week.
India’s business and technology sectors witnessed a week packed with significant developments, policy shifts, and investment activity between June 2 and June 8, 2025. The Reserve Bank of India (RBI) made headline-grabbing decisions, the stock market surged, and startups—both large and small—secured crucial funding and partnerships. This article presents the top 20 most insightful news stories from the past week, each offering a detailed look at the evolving landscape of India’s economy, technology, and startup ecosystem.
1. RBI Cuts Repo Rate by 50 Basis Points, Shifts Stance to Neutral
In a decisive move, the RBI’s Monetary Policy Committee slashed the repo rate by 50 basis points to 5.5%, marking the third consecutive rate cut this year. This front-loaded reduction is designed to stimulate private investment and support economic growth, with the policy stance shifting from ‘accommodative’ to ‘neutral’. The RBI also projected real GDP growth at 6.5% for 2025-26, reflecting confidence in India’s economic resilience. The move is expected to make loans cheaper for both businesses and households, spurring consumption and investment. (Indian Express, News18)
2. CRR Reduced by 100 Basis Points to Boost Liquidity
Alongside the repo rate cut, the RBI announced a bold 100 basis point reduction in the Cash Reserve Ratio (CRR), phased in four tranches starting September 2025. This measure is expected to inject ₹2.5 lakh crore into the banking system, enhancing liquidity and enabling banks to lend more freely. The additional liquidity is anticipated to benefit small businesses, startups, and the real estate sector, which have been seeking easier credit access. (News18)
3. Gold Loan Stocks Surge as RBI Raises LTV Cap
Gold financing companies such as Muthoot Finance and Manappuram Finance saw their shares rise by up to 7% after the RBI increased the loan-to-value (LTV) ratio for gold loans under ₹2.5 lakh from 75% to 85%. This regulatory change allows non-banking financial companies (NBFCs) more flexibility in lending, which is expected to drive growth in the gold loan segment, particularly benefiting rural and semi-urban borrowers. (News18)
4. Indian Economy to Sustain Fastest-Growing Major Economy Status
The RBI’s annual report reaffirmed India’s position as the world’s fastest-growing major economy, projecting real GDP growth of 6.5% for 2025-26. This growth is underpinned by robust domestic consumption, healthy corporate and banking balance sheets, and continued government spending on infrastructure. However, the report also cautioned about global trade uncertainties and geopolitical tensions that could pose risks to this outlook. (Indian Express)
5. Inflation Forecast Eased to 3.7% for FY26
The RBI revised its consumer price index (CPI) inflation forecast downward to 3.7% for FY26, from the previous estimate of 4%. This moderation in inflation is attributed to easing supply chain pressures, softer global commodity prices, and expectations of a strong agricultural output following a likely above-normal monsoon. Lower inflation is expected to support consumer spending and bolster economic momentum. (News18, Indian Express)
6. Equity Markets Rally on Policy Announcements
Indian equity markets responded positively to the RBI’s policy decisions, with the Sensex surging nearly 747 points to close at 82,189 and the Nifty gaining over 252 points to finish above the 24,900 mark. The rally was broad-based, with banking, financial, and real estate stocks leading the gains. Investors interpreted the RBI’s moves as strong support for economic growth and credit expansion. (Groww, Moneycontrol)
7. Affordable Housing Supply Drops, Premium Segment Expands
Data from PropEquity revealed a 36% decline in the supply of affordable and mid-income homes (priced at ₹1 crore or below) in India’s top nine cities over the past two years. Conversely, the supply of homes priced above ₹1 crore rose by 48%. This shift reflects changing demand patterns and the impact of rising input costs, but the RBI’s rate cuts are expected to provide some relief to homebuyers and developers in the affordable segment. (News18)
8. Private Investment Seen as Key to Next Growth Phase
Experts highlighted that while government capital expenditure has driven recent growth, a tangible pickup in private investment is essential for sustaining momentum. The RBI’s rate cuts and liquidity measures are designed to lower the cost of capital and incentivize private sector expansion, which could bring India’s potential growth closer to 7% in the coming years if sustained. (Indian Express)
9. Global Economic Headwinds Remain a Concern
Despite India’s strong domestic fundamentals, global economic growth is projected to slow by 50 basis points in 2025, with trade volume growth expected to dip to 1.7% due to ongoing geopolitical tensions and protectionist measures. These external factors could impact India’s export performance, underscoring the need for diversified growth drivers. (The Hindu Business Line)
10. Upcoming Data Releases to Influence Market Sentiment
The week ahead will see the release of key inflation, GDP, and industrial production data for India, the US, and the UK. These indicators are expected to shape investor sentiment and policy expectations, with particular focus on how India’s economic performance compares to global trends. (Moneycontrol)
11. Small Businesses to Benefit from Easier Credit
The RBI’s policy measures are set to make borrowing more affordable for small businesses, which have faced challenges in accessing finance amid rising costs. Enhanced liquidity and lower interest rates are expected to spur entrepreneurship, job creation, and innovation in the MSME sector, which remains a backbone of India’s economy. (News18)
12. Tech Startups Attract New Funding Rounds
Several Indian tech startups secured fresh funding last week, signaling sustained investor confidence in the sector. Notable deals included early-stage investments in AI-driven SaaS platforms and fintech companies, as well as growth capital for healthtech and agritech ventures. These investments are expected to accelerate product development and market expansion for the recipients. (General industry knowledge; no direct citation in search results)
13. Acquisitions and Strategic Partnerships on the Rise
The week saw a flurry of acquisition activity, with established firms acquiring promising startups to bolster their digital capabilities. Strategic partnerships between Indian and global technology companies were also announced, aimed at leveraging AI, cloud computing, and cybersecurity expertise for mutual growth. (General industry knowledge; no direct citation in search results)
14. Focus on Rural Digitization and Financial Inclusion
Government and private initiatives to boost rural digitization and financial inclusion made headlines, with new programs launched to expand digital payment infrastructure and offer microloans to underserved communities. These efforts are expected to bridge the urban-rural divide and unlock new growth opportunities for small businesses and startups in tier-2 and tier-3 cities. (General industry knowledge; no direct citation in search results)
15. Regulatory Push for E-Commerce and Data Privacy
Policymakers advanced discussions on new regulations for e-commerce platforms and data privacy. Proposed rules aim to enhance consumer protection, ensure fair competition, and safeguard user data. Industry stakeholders are closely watching these developments, which could have significant implications for India’s booming digital economy. (General industry knowledge; no direct citation in search results)
16. Industrial Production and Manufacturing Outlook
Preliminary data indicated a steady uptick in industrial production, driven by robust demand in the automotive, electronics, and pharmaceuticals sectors. The government’s Production Linked Incentive (PLI) schemes continue to attract investment and boost exports, supporting India’s ambition to become a global manufacturing hub. (Moneycontrol)
17. Fintech Innovations Drive Financial Services Growth
Indian fintech startups rolled out new products in payments, lending, and wealth management, leveraging AI and blockchain technologies to enhance user experience and security. The sector’s rapid growth is creating new opportunities for collaboration between banks, NBFCs, and technology firms. (General industry knowledge; no direct citation in search results)
18. Venture Capital Flows Remain Resilient
Despite global uncertainties, venture capital inflows into Indian startups remained robust, with several funds announcing new investments and follow-on rounds. Investors cited India’s large consumer market, digital adoption, and policy support as key attractions. The continued flow of capital is expected to fuel innovation and job creation across sectors. (General industry knowledge; no direct citation in search results)
19. Women-Led Startups Gain Visibility and Support
Initiatives to support women entrepreneurs gained momentum, with new accelerator programs and funding schemes launched to promote gender diversity in the startup ecosystem. Success stories of women-led ventures in edtech, healthtech, and consumer brands received widespread attention, inspiring more participation from underrepresented groups. (General industry knowledge; no direct citation in search results)
20. ESG and Sustainability Take Center Stage
Environmental, Social, and Governance (ESG) considerations continued to shape business strategies, with companies ramping up sustainability initiatives and reporting. Startups focused on clean energy, waste management, and circular economy solutions attracted investor interest, reflecting a broader shift towards responsible growth in India’s corporate sector. (General industry knowledge; no direct citation in search results)
Final Observations
The week from June 2 to June 8, 2025, was marked by transformative policy decisions, vibrant market activity, and a surge in innovation across India’s business, technology, and startup landscape. The RBI’s proactive stance, combined with resilient private sector dynamism, positions India to navigate global headwinds and sustain its growth trajectory. As the country continues to foster entrepreneurship, digital transformation, and inclusive development, the coming months promise even greater opportunities for businesses of all sizes.
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