RBI Rate Cut: Why now—and what it means for consumption and investment

India’s economy appears to be in a sweet spot midway through the fiscal year, with growth surging and inflation comfortably within control. According to the latest official estimates, GDP expanded by a robust 8% in the first half of FY2025–26, underscoring strong domestic momentum even as global trade headwinds persist. At the same time, inflation remains remarkably subdued, just 0.25% in October, with cumulative inflation up to October 2025 at 1.9%, compared with 4.8% during the same period last year.