India’s economy is growing at a solid 7.8% — but behind the numbers, a

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India’s economy is growing at a solid 7.8% — but behind the numbers, a quiet tension is brewing.

The RBI is watching inflation creep up to 6%, its tolerance limit, while global rates (especially the US Fed’s) keep climbing. Why does this matter for you? Because if India’s rates don’t stay attractive compared to G7 nations, foreign investors might pull back; which could affect everything from job creation to your EMI. External MPC member Saugata Bhattacharya put it plainly: we need a ‘gap’ with G7 rates to keep capital flowing in. The forecast? Two small rate hikes (25 bps each) in Dec and Feb. Not a disaster; but a reminder: even if the economy is strong, policy makers are walking a tightrope. Watch this space; your loan rates might not be the only thing changing.