Tension with govt to ease as RBI cuts rates

The RBI announced a substantial rate cut as baby steps such as another 25 basis points reduction would have fallen well short of expectations and seriously impeded NDA's efforts to quicken investment and boost growth. "Interest rate cuts will be very welcome by India Inc and should help improve customer sentiment, as well as kick-start the investment cycle," said Karan Singh, the managing director Bain & Company India.