By Rajni Thakur

Several recent developments are clouding the forward-looking view of the Indian economy. US’ 50% tariff imposition has intensified growth headwinds while inflation levels are hovering at the lower end on RBI’s target band. Foreign capital outflows have accelerated and domestic currency has been volatile. Meanwhile, GST rationalisation has spurred pent-up demand in many sectors, and early indicators show a huge surge in sales of key consumption segments like automotive, electronics, etc.

MPC analysis was more critical than rate action

Amidst mixed signals from various directions, MPC’s assessment of the current domestic landscape and forward-looking view as it assesses the twin impact of tariff shock and GST rationalisation on growth was a more crucial part of the MPC ann

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