New Delhi, Dec. 5 -- India's booming 8% GDP growth masks a deeper challenge, warns Jimeet Modi, Founder & CEO of SAMCO Group. In an interview with LiveMint, Modi argues that "India needs a rate cut now because the real interest rate. has become excessively tight and is choking nominal GDP momentum," calling for urgent policy action even as markets eye a potential Santa rally and shifting sector leadership. Edited excerpts:

India needs a rate cut now because the real interest rate which is highest in more than a decade at 5.25% has become excessively tight and is choking nominal GDP momentum. Real growth is strong, but nominal is barely keeping pace. This hurts tax collections, corporate earnings and debt sustainability.

With inflation a...