The Hindu editorial on15 September 2025 argues that India’s macroeconomic outlook is currently favourable, with low inflation and relatively high growth reversing last year’s pattern of high inflation and sluggish growth. Retail inflation in August rose slightly to 2.1% but remains well within the RBI’s 2–6% target band, with food inflation subdued and prices of vegetables and pulses contracting sharply. Combined with free foodgrain distribution, this ensures affordability of essentials. Inflation across housing, fuel, and clothing is also low. Looking ahead, the editorial notes that even if India reduces Russian oil imports under U.S. pressure, the inflationary impact would be limited due to lower global crude prices. The GST rate cuts taking effect from September 22 are expected to push inflation down further. While low inflation and strong growth may prompt the RBI’s Monetary Policy Committee to consider interest rate cuts, global uncertainties suggest such a move may only come in December. Overall, India appears set for a benign inflation outlook alongside robust growth.
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