The rate cut was in line with expectations, and comes as the U.S.' reciprocal tariffs kicked in, with a 26% levy slapped on goods coming in from India.

India’s central bank delivered a back-to-back rate cut and signaled more monetary support ahead as U.S. trade tariffs raised alarm about slowing global growth.

India's central bank has cut interest rates by 0.25% amid a spate of downgrades to growth following Donald Trump's tariff announcements. The Reserve Bank of India (RBI) reduced repo rates from 6.25% to 6%, a second cut since February when rates were brought down after nearly five years.