India’s economy holds its growth momentum as activity broadens in September and the IMF raises India’s outlook. Inflation spreads across the consumption basket and wholesale prices point to building cost pressures. The RBI is expected to respond with a shallow tightening cycle; foreign portfolio investors stay cautious as equities lag global peers. The rupee stabilises on RBI support and large deposit inflows, even as forex reserves ease and hedging costs rise.

Click the link to access the Annexure to NIIF’s Monthly Economic Report for October 2026