Kerala FM calls for unity among communities, refers to US tariffs in Budget speech
Thiruvananthapuram (PTI): The 2026-27 budget speech by Kerala Finance Minister K N Balagopal saw a call for "unity" among the various communities and highlighted global issues like the tariffs imposed by US President Donald Trump and the incarceration of the Venezuelan President by him.
Balagopal said that "unity of Keralites" was the greatest treasure and the guarantee for the future growth and prosperity of the state.
It will help to attract foreign tourists, entrepreneurs and capital to our state, he said.
Balagopal said that the government has earmarked Rs 10 crore for a project to analytically record the history of the religious and cultural fraternity of Kerala so that people of "other lands" may also learn about it.
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It will also help to combat against the "highly venomous communal snakes" trying to destroy the unity of Kerala, he said.
"They have tried many times to poison the serenity of life in Kerala. We have so far been able to combat these poisonous elements by creating a defence of love and unity.
"But we have to realise that these venomous snakes spewing religious nationalism are not the ones who quickly admit defeat and retreat. We must see that they are active with new strategies to communally divide, polarise and subjugate the Keralites. The new strategy preached by ‘election experts’ is to stigmatise those who create the defence of public unity against communalism," Balagopal said.
He said that it was by recognising and respecting various religions and cultures that Kerala reached where it is now.
"Even in the legend of Lord Ayyappa and Vavar, there are yarns of religious harmony laced intricately together. This unity and fraternity may be astonishing to the people of many other lands.
"We have to take forward this historic fraternity of Kerala with more strength and spirit. History of the religious and cultural fraternity of Kerala has to be recorded analytically. The government intends to introduce a project for this, an amount of Rs 10 crore is earmarked for it."
Balagopal also referred to the tariff's imposed by Trump and said that his policies have created severe uncertainties in world trade and commerce.
"There is no doubt that this has adversely affected India and Kerala as well. It has also severely affected the export of our marine products," he said.
The minister further said that the central government yielding to Trump’s threats have adversely affected the state’s tax revenue.
"The details of the new free-trade agreement signed by India and the European economic community have not been revealed completely. However, there is a strong concern that this will have a negative impact on our dairy farmers and industries. In order to deal with the situation, we need to be prepared in advance," he said.
Balagopal, referring to the incarceration of Venezuelan President Nicolas Maduro by the US, said the world was "rolling back from the democratic order" and it was quite "apprehensive".
"The incident that the head of a state is being arrested from the President's house by America and incarcerated by violating all international laws was very rare even in the dark eras of colonial rule.
"Such incidents are a warning to us as well. We, the Keralites should unite and move forward for the best interest of the state. We can overcome any crisis if we stand united for the interest of the state. Our history teaches us so. Let us uphold the interest of our state and move forward to the future, together," he said in his budget speech.
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RBI keeps policy rate unchanged amid inflationary pressure
Mumbai (PTI): The Reserve Bank on Wednesday expectedly kept interest rates unchanged amid hopes of a global recovery on the back of ceasefire in the six-week-long US/Israel-Iran conflict.
The policy decision comes as a month and a-half-long West Asia conflict has disrupted energy supplies, shot up crude oil prices and created fiscal and inflationary pressures for import-dependent nations like India.
This is the first monetary policy review after the government announced a fresh inflation target for the RBI last month. The government has asked the RBI to maintain retail inflation at 4 per cent with a margin of 2 per cent on either side for another five years ending March 2031.
Announcing the first bi-monthly monetary policy for the current fiscal, RBI Governor Sanjay Malhotra said the Monetary Policy Committee (MPC) has unanimously decided to retain short-term lending rate or repo rate at 5.25 per cent with a neutral stance.
The rate cut pause comes on the back of the consumer price index (CPI) based headline retail inflation that moved closer to the RBI's medium-term target of 4 per cent at 3.21 per cent in February.
Additionally, the rupee has depreciated by over 4 per cent since the war, which has consequences for pushing up import inflation.
However, the rupee has appreciated by 50 paise to 92.56 against US dollar following announcement of the ceasefire by the US and Iran.
Based on the recommendation of the MPC, the RBI reduced the repo rate by 25 bps each in February, April, and December 2025 and 50 basis points in June amidst easing retail inflation.
India's retail inflation dropped to a historic low of 0.25 per cent in October 2025, marking the lowest level since the Consumer Price Index (CPI) series was introduced.
However, the rupee declined to historic low and crossed 95 against a dollar last month making imports costlier, raising fears of rise in inflation. Rupee touched a record low of 95.21 on March 30, 2026.
