After a very strong run, India’s economy faces a more challenging few quarters in the face of punitive US tariffs. But hopes are growing again that these could be reduced. And in any case, domestic demand should hold up well, ensuring that India remains a relative bright spot in the global economy. Headline inflation has fallen to a multi-year low. This gives the RBI scope to cut the repo rate by a further 50bps in the coming months, taking it down to 5.00%.
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