Time ripe for rate cut, says fin secy

"Were the outside situation favourable, it would have shown in export momentum, but that's not the case...we're a labour surplus economy, we could have boosted production, but that's not happening."

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In the present scenario, the growth rate projected by the Economic Survey seems realistic, he said. The survey has projected growth in FY26 to be in the range of 6.3-6.8%.

The finance secretary further said that the income tax relief granted to the middle class - no tax payable up to Rs 12 lakh of annual income - may also prompt some individuals to park the money in savings accounts and some to invest in assets. "Banks are not flush with money; if they get more deposits, they will welcome it."