Staying the same.

"India's retail inflation accelerated in July, led by higher food prices," as, "The consumer price index (CPI) rose 4.45% from a year earlier." "The central bank left its benchmark policy rate unchanged last week, awaiting clearer evidence on whether inflationary pressures had become broad-based in Asia's third-largest economy, making India an outlier among regional peers." Reuters. "Five months after the Iran war raised fears of an inflation spike and an economic downturn, Indian officials are sounding more confident," as CPI inflation has stayed within RBI's tolerance band of 2%-6%, "Consumer demand has also held up, with vehicle sales at record level, credit growth climbing to a two-year high and GST receipts rising at at a double-digit pace." As the festival season approaches, "businesses are building inventories, ramping up production and adding temporary workers in anticipation of a pickup in demand." ET. However, "Disruptions around the Strait of Hormuz are rapidly turning a shipping problem into a wider cost challenge," as "the increase in landed costs, which include item price, shipping fees, customs, taxes and charges for insurance and risk, can vary from 35 to 50% on some trade lanes." "Jitendra Srivastava, CEO of Triton Logistics & Maritime, says freight rates to the Gulf on some routes have climbed to $3,400-$4,000 from $300-$400 before the latest disruption." ET. "On July 29, US Fed left interest rates unchanged at 3.50% -3.75%." Under new Fed chair Kevin Warsh, "Policy statements have shrunk from 341 words to 130. Forward guidance is gone." So the markets "fall back on behavior, and a debutant chair has none. So, they forecast the man." With the RBI, "What investors have absorbed is not a condition but a blunter summary: this lot don't raise rates.And the more firmly markets assume no rise is coming, the more damage an eventual rise does. Itself a reason to postpone again," wrote Krishnan Ranganathan. Meanwhile, "Credit rating agency Fitch...affirmed India's sovereign rating at 'BBB-', citing robust growth balanced against still-weak fiscal metrics that it reckons could face pressure from rising concerns over youth unemployment." "Fitch has rated India at 'BBB-' since 2006, while Moody's has retained its 'Baa3' since 2020. S&P Global Ratings, meanwhile, upgraded India by a notch to 'BBB' last year." Reuters. Such low ratings are considered unfair and cause considerable resentment in India. "Credit rating agencies need to reform their sovereign process to correctly reflect the default risk of developing economies, saving billions in funding costs, the government's chief economic advisor, V Anantha Nageswaran said." "His comments coincide with India seeking an upgrade to its sovereign credit rating, currently at the lowest investment grade." Mint. Rating agencies "care far more about how much a government owes than what it plans to do," wrote Prof Prachi Mishra. "It's not just about running a primary surplus (revenues minus non-interest spending). Since India's growth outpaces its borrowing costs, a primary surplus would bring the debt ratio down automatically." "Country effects matter more. They likely reflect the strength of institutions and transparency, not the numbers themselves." All our institutions have been corrupted. "India's main financial crime fighting agency has investigated well over a hundred opposition politicians in the past decade," (Reuters) while the BJP has been labeled the "washing machine" party for removing allegations of crime from anyone who joins it (The Print). "India's Election Commission (ECI), one of the most trusted public institutions in the world's largest democracy," "has fielded a string of allegations from the opposition, ranging from voter fraud and manipulation to inconsistencies in electoral rolls. It has denied all of these." BBC. The markets know the RBI will not raise rates to help the government borrow at lower rates. If Indians don't trust our institutions, why would the agencies? We are not in charge of the fruits of our action and must not be attached to inaction, said Lord Krishna in the Bhagawad Gita. The greed for power and plunder. Insatiable.