Decline in inflation paves way for higher GDP growth. Moody’s report expects monetary easing to play a key in role in accelerating India’s growth rate. Crisil report states that India’s GDP growth is expected to hold steady at 6.5 per cent in fiscal 2026. Bank of Baroda economist Dipanwita Mazumdar said: “With the current inflation print in line, we believe CPI would undershoot RBI’ target in Q4, thus opening more policy space by RBI in terms of easing, to support growth.” The central bank last month announced a 25 basis cut in the policy rate from 6. 5 per cent to 6.25 per cent. The decision maintains a delicate balance between controlling inflation and pushing up the growth rate in a slowing economy. The MPC also unanimously decided to continue with its neutral stance in monetary policy and will focus on inflation while supporting growth. This would provide flexibility to respond to the macroeconomic environment, Malhotra said.