RBI's Neutral Stance: What Lies Ahead for India?
The Reserve Bank of India (RBI) is expected to maintain a neutral stance while assessing the impact of previous rate cuts. Inflation control is crucial for potential future cuts, likely in FY26. Recent US tariffs on Indian exports, mainly affecting merchandise, could challenge diplomatic ties but may not heavily impact overall trade. India’s economy remains primarily domestically driven, meaning global trade slowdowns won't greatly affect inflation. With initiatives like Production-Linked Incentives, India's manufacturing base is growing, hinting at an increase in global trade share in the coming years.
