India trip notes – heatwave, rupee, RBI and AI

A week spent visiting clients and contacts in Delhi and Mumbai has underscored the extent to which the Middle East conflict is reverberating through the economy. Several of our discussions were centred on the weakness of the rupee and the RBI’s next moves – many shared our view that interest rate hikes are likely if oil prices stay at current levels. Most were still cautiously optimistic on longer-term prospects, although the impact of AI on the economy remains a point of contention.