Banking

In a strategic move to protect the Indian Rupee from global currency volatility, the Reserve Bank of India (RBI) net purchased $1.76 billion in May 2025. According to RBI’s July bulletin, it bought $9.1 billion and sold $7.3 billion, resulting in a net addition to India’s foreign exchange reserves. This intervention comes at a time when the Rupee has been facing downward pressure—falling over 1% during May—due to rising global crude prices, geopolitical uncertainties, and foreign fund outflows. Such RBI moves aim to stabilize the currency, ensuring import costs don’t spiral and inflation remains in check. Analysts say this shows RBI’s intent to smooth out volatility rather than defend a specific rupee level. It also reflects the central bank’s cautious but proactive approach in ensuring macroeconomic stability, especially ahead of the festive demand season when imports tend to rise. Why this matters:A stronger forex position gives India greater resilience against global shocks, protects purchasing power, and boosts investor confidence.  

India’s stock market penetration is growing beyond metros.The BSE (Bombay Stock Exchange) has added 45 new regional brokers from Tier-2 and Tier-3 cities like Indore, Kochi, and Bhubaneswar.This reflects rising interest in stock investing and IPOs from retail investors outside major cities.With platforms like UPI-integrated IPO apps and vernacular investor education, more Indians are now part of the capital market journey.

India’s rapid expansion of regional air connectivity is sparking a surprising ripple effect in real estate. Under the UDAN scheme, dozens of Tier-2 and Tier-3 cities like Jharsuguda, Belagavi, and Deoghar now have functional airports. And investors are quick to seize the opportunity. As soon as a flight becomes operational, local land prices begin to rise sometimes by 30–50% within a year. The logic is simple: where airports go, people follow. Better air links attract working professionals, tourists, and even tech startups. Local businesses get access to bigger markets, and builders start planning residential and commercial complexes. Several real estate companies are already acquiring plots in underdeveloped regions they predict will become the next big hubs. For example, Hubballi in Karnataka saw property registrations jump 20% after airport upgrades and daily flights to Bengaluru. If you’re an investor with long-term goals, these aviation-linked corridors could offer outsized returns. But beware: infrastructure growth must keep pace with property booms else you risk buying land in a ghost town.