THE IMPACT OF US INTEREST RATES OF THE INDIAN SECTORAL INDICES

The study explores the influence of fluctuations in U.S. interest rates on some crucial economic indicators in India and provides evidence of the ever-deepening interconnectivity of global economies. Analyzing data from 2000 to 2023, the study utilizes regression techniques to assess how it affects Indian inflation, repo rates, GDP growth, stock market indices, and fiscal deficits. According to the results, variations in U.S. interest rates have a strong impact on Indian inflation and repo rates. Higher U.S rates push capital out of the country, weaken the rupee, and increase borrowing costs lower rates attract inflows, boost liquidity, and consumption.There was a negative correlation between the U.S. rates and Indian GDP and stock market performance, though not always statistically significant. The rate cuts of the U.S during global crises have lowered the borrowing costs of India thereby aiding fiscal stability. RBI aligns policies with trends in the global arena in order to stabilize markets and to attract foreign investments.This comprehensive review will detail complex implications of U.S. monetary policies on the Indian economy, providing policymakers and investors with vital insights into risks and opportunities.