According to the report, while the Indian economy faces incremental slowing of growth and geopolitical risks, a knee-jerk reaction such as an immediate rate cut might not be prudent.

India's GDP growth slowed to 5.4% in Q2 FY25, marking an eight-quarter low and raising concerns about the economic outlook. Economists are revising growth forecasts downward, with Goldman Sachs projecting 6.

India's economy grew at its slowest pace in seven quarters, expanding just 5.4% year-on-year in the July-September quarter. Weaker manufacturing and private consumption drove the slowdown. The Reserve Bank of India faces calls to cut rates to stimulate demand,

In the past few years, RBI’s report card on its GDP projections compared to actual growth have been mixed. Actual GDP growth has both overshot and undershot the projections, often forcing RBI to revise its projections.

The economy expanded 5.4% in the second quarter from a year ago, hobbled by tepid consumption demand and a weakening in the mining sector