Inflation control remains the central monetary objective, with rates retained and liquidity tools calibrated to support credit.
The Reserve Bank retains a policy stance prioritising inflation control while supporting sustainable medium-term growth and ensuring liquidity for credit. Given sticky inflation driven by food and input costs and supply constraints, policy rates and the cash reserve ratio are retained, while the statutory liquidity ratio is reduced by one percentage point with effect from the notified fortnight. The Bank raises its headline inflation projection for the year and revises growth downward, warning of intensified external and domestic risks including the twin deficits and uneven monsoon, and pledges continued use of liquidity operations and readiness to respond to shocks.

Monetary policy commitment to contain inflation while maintaining liquidity to support credit flow and sustainable growth.
The Reserve Bank kept policy rates and reserve requirements unchanged while reducing the statutory liquidity ratio of scheduled commercial banks by one percentage point to ease liquidity and support private sector credit. The decision reflects a balance between persistent headline inflation driven by food and input costs and a slower growth trajectory with a small output gap; lowering policy rates was deemed likely to fuel inflation without assured growth benefits. The Bank emphasised objectives of inflation containment, sustaining medium term growth, maintaining liquidity for productive credit, and readiness to address external and domestic risks.

CESTAT appeal forms updated to add identification fields, subject-matter selection, three case-law slots, and tracking identifiers.
Proposed amendments standardise appellate EA/CA/ST forms to capture additional identification fields (assessee code, location code, PAN/UID), mandate quadruplicate filing with copies of impugned orders, require monetary and period-of-dispute particulars, and include procedural tools: a selectable subject-matter box, provision to cite three case laws on the form, reliefs claimed, hearing preference, and a common alpha-numeric number to link related orders, all to facilitate case bunching, tracking and database creation.

Trade deficit rises as exports decline while imports fall, underscoring shifting sectoral strengths in exports and imports.
India's merchandise trade in June 2012 showed exports declining while imports fell by a larger extent, producing a monthly trade deficit; figures for June and the April-June quarter are provisional. Sectoral highlights identify rice, iron ore, oil meal and spices as strong exporters in June and petroleum, engineering goods, gems and jewellery, drugs and readymade garments as significant absolute contributors in the April-June quarter. On the import side, medicine, vegetable oil, iron and steel and professional equipment showed growth in June, with petroleum, gold and silver, machinery, pearls and electrical goods notable in absolute quarterly import values.

Electronic transmission of Bank Realization Certificate replaces physical BRC, enabling EDI connectivity and reduced transaction costs.
Electronic transmission of Bank Realization Certificates requires banks to register with DGFT for secure daily EDI transmission of foreign exchange realization details, creating direct connectivity among banks, DGFT, customs and exporters for claiming export benefits and reducing human interface and transaction costs; banks committed to implement this transition by the prescribed date after which physical BRCs will be dispensed with.

Preferential Trade Agreement negotiations accelerated, expanding textile cooperation and joint committee mechanisms to deepen bilateral trade ties.
The document describes bilateral initiatives to expand India-Mauritius trade through an existing Memorandum of Understanding on the textile and clothing industry that contemplates information exchange, technology transfer, productivity and quality improvements, product development and executive training, to be advanced via a Joint Committee. Ministers agreed to hasten Preferential Trade Agreement negotiations to deepen economic engagement and diversify trade, and the release summarises recent trade statistics, principal traded goods relevant to textiles, and Mauritius' role as a major source of foreign direct investment into India.

FEMA master circulars consolidate foreign exchange rules, clarifying compliance and transaction procedures across investment, trade and remittance.
Consolidation of foreign exchange regulatory guidance through FEMA master circulars dated 02-07-2012 unifies operational frameworks and compliance instructions for cross-border transactions and resident/non-resident dealings. The series covers foreign investment, outward resident investment, import/export of goods and services, external commercial borrowings, establishment of foreign offices, remittance facilities, NRO and Vostro accounts, money changing and transfer services, immovable property transactions by NRIs/PIOs/foreign nationals, risk management, and compounding of contraventions, specifying eligibility, permitted activities and procedural requirements.

Non-tariff barriers against Indian pharma to be addressed, Committee to review regulatory reforms and approvals.
Government will establish a Committee of Secretaries to consider industry suggestions and implement time bound regulatory and procedural reforms, including expedited DCGI approvals for clinical trials and sample imports, procedural simplification, and enhanced venture capital support for R&D; progress will be reviewed after three months. The Government will also pursue non tariff barrier concerns in bilateral fora and promote Brand India Pharma to expand market access for affordable, quality generics.