Analysts have said inflation was likely to remain above 4% in 2018, dashing hopes for any rate cut.
Growth slowed to a three-year low of 5.7% in the quarter that ended in June, and finance minister Arun Jaitley has said that the government is looking for ways to speed it up.
The big worry is that economic growth, which slipped to a three-year low in the last quarter, could take a further hit if public spending is slashed.
India’s wholesale price inflation rose to 3.24 % from a year ago, driven by higher prices of food and fuel products.
The consumer price index rose 3.36% in August from a year earlier, compared with 2.36% in July.
The consumer price index, the main policy target of the RBI, likely rose 1.87% in July from a year earlier, compared with an increase of 1.54% in June.
In its mid-year economic survey, chief economic adviser Arvind Subramanian said there were downside risks to the official growth forecast of 6.75-7.5% for the fiscal year to March 2018.
The H-1B visa for skilled workers in the US is one that many IT companies like Tata Consultancy Services and Infosys rely upon heavily.
Ruling out any further slippage in the timeline, finance minister Arun Jaitley said Indian small business has been given enough time to prepare.
Despite the strong mandate, Modi still faces a struggle to implement reforms to boost growth and jobs.