Interest rate cut to 5.5%, millionaires to increase 55%.

"United States President Donald Trump...indicated a major trade agreement with India could be on the way. Speaking at the 'Big Beautiful Bill' event at the White House, Trump confirmed a deal with China and hinted at an even more significant development involving India." ET. Sounds ominous. Very ominous. Because, "Trump...said that he was calling off trade negotiations with Canada immediately, citing its digital services tax. He added that the neighboring country would be informed of the tariff rate within a week." ET. "The Indian government has removed the 6% equalisation levy on online advertisements starting 1 April 2025," which will benefit global tech companies like Google, Meta and Amazon. A 2% equalisation levy was withdrawn in July 2024. BS. Yesterday, "Trump said he plans to send out a letter over the next week and a half telling countries what US tariffs rate they will have to pay." ET. Fortunately, India has nothing to worry about. "S&P Global Ratings has revised India's GDP growth projection upwards for the ongoing fiscal year to 6.5%, considering factors such as anticipated normal monsoon, reduced crude oil prices and monetary easing." TOI. Stock markets are soaring. The Nifty 50 has reached its highest level of 2025 at 25,549, just 2.7% shy off its peak of 26,277 in September, while the Sensex is at 83,755, just 2.6% short of its September peak of 85,978. Mint. "A staggering Rs 1 trillion worth of shares have been dumped by promoters, private equity firms and other large strategic investors," as "Promoters alone have offloaded shares worth about Rs 610 billion, while PE/VC firms have exited nearly Rs 280 billion. Add to that the Reliance Industries' Rs 95.80 billion offloading in Asian Paints and smattering of block deals by other strategic investors." ET. "In June, foreign portfolio investors (FPIs) pulled out over $1.06 billion from Indian debt, after a sharp outflow of $3.03 billion in April. May saw a small inflow of $220 million." This is mainly due to narrowing spread in yields between Indian government bonds and US Treasuries. MC. To increase their returns, "Investors in India are increasingly turning to BBB- rated corporate bonds due to their higher yields, as the benchmark 10-year government bond yields have fallen." medial.app. India needs private sector investment. Sanjay Malhotra, the new Reserve Bank of India governor, has thrown the kitchen sink at the problem by cutting interest rate by 1% to 5.5% and flooded the banking system with liquidity. But, "The private sector's capacity-expansion intentions have fallen to a three-year low. Banks' exposure to industries that used to be some of their biggest borrowers - roads, power, telecommunications, ports, airports, construction, property builders - is down to 11% of their loan book, half of what it was a decade ago," wrote Andy Mukherjee. All this money is going somewhere. "India is witnessing a sharp rise in the number of high-net-worth individuals, with the millionaire population expected to grow over 55% between 2024 and 2029." TOI. Like water, money flows down. Into deep pockets. From the rest.