India has entered a rare “Goldilocks period”, achieving an extraordinary balance of very low inflation and very high growth. Since the October policy, the economy has seen rapid disinflation, with headline inflation dropping to an unprecedented 1.7% average in Q2, even dipping to a stunning 0.3%, marking the lowest level since the adoption of flexible inflation targeting. Meanwhile, real GDP growth surged to 8.2% in Q2, powered by strong festive-season consumption and GST rate rationalization. For the first half of the year, inflation has remained a benign 2.2%, while growth has averaged 8%, creating an ideal macroeconomic environment. Despite global uncertainties and divergent inflation trends worldwide, India continues to show strong resilience and monetary stability.

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