Macro Bite - India : Why RBI should cut fast and deep

Re-upping this post, originally published in November 2024.

Bottomline : Growth risks have shifted firmly to the downside following the US’ liberation day tariffs, that impact India directly and also generate substantial second round effects through negative impact on global trade and growth. This warrants a strong domestic policy response. We don’t think the RBI should take comfort in any potential supply chain…