Two recent reports about India s economy show its strength but also warn about challenges ahead. The International Monetary Fund (IMF) praised India s growth and financial progress. The Reserve Bank of India (RBI) highlighted good growth but cautioned about inflation and potential risks to future progress.
Since May last year, RBI has hiked the repo rate six times in a row taking the total hike to 250 bps. The repo rate has shifted from 4% to a four-year high of 6.50%.