FDI restrictions easing, MPC minutes put hikes in play

The government is reportedly considering raising the threshold above which foreign direct investment requires approval from the Cabinet Committee on Economic Affairs. The change would be small in itself, but would add to a growing list of measures aimed at making it easier for foreign firms to invest in India. Meanwhile, the minutes of the RBI's August MPC meeting struck a notably more hawkish tone than the policy statement, with four of the six members flagging the prospect of rate hikes as inflation risks build. We therefore remain comfortable with our forecast for 75bps of tightening, taking the repo rate to 6.00% in the first half of 2027.