The Reserve Bank is likely to maintain the status quo on the short-term interest rate in its monetary policy review later this week, with inflation staying in comfort zone and economic growth moving at an accelerated pace, opined experts.

The RBI has left the benchmark policy rate (repo) unchanged in its past four bi-monthly monetary policies. The RBI had last increased the repo rate In February to 6.5 per cent, thus ending the interest rate hiking spree which began in May 2022 in the aftermath of Russia-Ukraine war and subsequent disruptions in the global supply chain resulting in high inflation in the country.

The Reserve Bank of India (RBI) today said nearly 97.26 per cent of the ₹ 2,000 bank notes have been returned to the banking system, and only about ₹ 9,760 crore worth of the notes are still with the public.

On May 19, the RBI announced the withdrawal of ₹ 2,000 denomination bank notes from circulation.

"The total value of ₹ 2,000 bank notes in circulation, which amounted to ₹ 3.56 lakh crore as at the close of business on May 19, 2023 when the withdrawal of ₹ 2,000 bank notes was announced, has declined to ₹ 9,760 crore as at the close of business on November 30, 2023," the RBI said in a statement.

India gave initial approval to defence acquisition projects worth Rs 2.23 lakh crore including procurement of 97 Tejas light combat aircraft and 156 Prachand combat helicopters, on Thursday. This comes as a major move to significantly enhance the combat capabilities of the armed forces.

The Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh, cleared the projects, amidst a bitter military standoff that is ongoing between India and China at a number of friction points in eastern Ladakh for over three years.

Walmart is making a gradual shift to India for import of goods and moving away from China, said Reuters citing data from Import Yeti. The move by the world's largest retailer appears to be aimed at cutting costs and diversifying supply chains.

Between January and August this year, Walmart shipped a quarter of its imports to US from India. In 2018, the figure was just 2 per cent.

During the same period in the year 2018, the retailer shipped 80 per cent of its imports from China. The number has come down to 60 per cent. China still remains Walmart's biggest country for imports.

Air India, India’s premier international carrier, sets its sights on Phuket, Thailand, marking a significant expansion in its global network.

Commencing operations from December 15, 2023, the airline plans four weekly flights initially, ramping it up to a daily service by January 8, 2024. Phuket leads the pack among four new international destinations slated for launch by Air India before March 2024.

Thailand’s recent inclusion of India in its visa-free countries list from November 10, 2023, till May 2024 adds to the allure. While several carriers operate between the two countries, IndiGo reigns as the sole provider of flights to Phuket.

The move aligns with Thailand’s drive to bolster tourism by simplifying visa requirements, reaffirming its position as a global travel hotspot. Air India leverages its operational cohesion to facilitate seamless passenger transfers, gaining an edge over its competitors.

Air India’s strategic move aims to challenge IndiGo’s monopoly on nonstop Delhi-Phuket flights. The airline aims to capture a chunk of the approximately 5,000 daily passengers between India and Thailand, particularly the 200 flying nonstop from Delhi to Phuket.

With an eye on interline arrangements and plans for potential Mumbai-Phuket flights, Air India aims to disrupt IndiGo’s stronghold on the market. Their recent aircraft induction spree further bolsters their expansion plans, signaling their intent to compete aggressively.

While challenges loom, including higher operational costs compared to IndiGo, Air India’s bold steps signify a shift in its strategy. The airline’s calculated risk-taking and ambition for regional expansion hint at a dynamic future.

Air India’s maneuvers not only challenge IndiGo’s dominance but also indicate a broader shift in the airline’s approach. As the battle for market share intensifies, the aviation industry braces for a fierce contest between these aviation giants.

(With inputs from agencies)