Crisil expects RBI to stay flexible on interest rates
India's central bank is expected to stay flexible with interest rates, since GDP growth is predicted to drop from 7.7% in the last fiscal (FY 2025-26) to 6.6% in this fiscal (FY 2026-27).
Crisil points to rising costs for producers, tough global export conditions, and weak monsoons as key reasons for the slowdown.
Ongoing conflict in West Asia could also shake up financial stability, so the RBI will need to tread carefully.
India records $4.2bn July FPI inflows
July 2026 brought good news: India saw $4.2 billion in foreign portfolio investment inflows, the strongest since September 2024, and stock markets rallied after months of outflows.
Liquidity surplus widened and borrowing rates eased a bit, but the rupee slipped against the dollar thanks to global pressures and higher oil prices.