Inflation and Growth

India’s headline inflation eased to 2.1% in June, below the RBI’s target for five months in a row. That, along with good monsoon and encouraging progress on sowing, will keep price gains below the RBI’s 3.7% projection in the current fiscal year that started April.

On the other hand, Trump’s tariffs on India — higher than Asian rivals like Vietnam and Indonesia — could possibly shave as much as 30 basis points from growth. Analysts will closely watch RBI’s assessment of the US tariff impact on growth and inflation to gauge the future policy path.

The RBI will likely lower its “inflation and growth forecasts and provide dovish guidance to aid monetary policy transmission,” said Santanu Sengupta, an economist at Goldman Sachs Group. He pegs inflation for the fiscal year at 3%.$BTC $BNB $ETH