A deft handling of these two situations has helped India stay neutral and even gain some dividends, but the harsh reality is that these two wars have aggravated global economic uncertainty. Their fallout on the Indian economy is inevitable even though some economists whom ET spoke to argue that tailor-made policy measures can limit the damage.
The reversal of a three-month declining trend in CPI inflation will put pressure on the RBI to again raise interest rates to tame prices, which have stayed above the comfort zone for the eighth month in a row.