Borrowing costs have surged as the central bank raised its policy lending rate 13 times between early 2010 and late 2011 to control inflation.

WSJ: India Car Sales Set to Fall This Fiscal Year

According to the World Bank, good monsoon rains this year and a stable local currency could further reduce inflation from current levels, allowing the central bank to further ease monetary policy after cutting its key lending rate twice already this year.

WSJ: World Bank: India's Economy Is Recovering

Just across the English Channel, a less-dovish European Central Bank (ECB) policy stance and the ongoing euro-lending indicator improvements has the Pound Sterling playing second fiddle.

FORBES: Momentum Suggests Investors Seeking Euro Exit

In the current money market conditions, where banks have to approach the central bank for borrowing, the overnight lending rate is in fact the key operational policy rate.

ECONOMIST: Is India still shining?