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flag India’s economy grew 7.6% in 2025, but trade deal delays may lead to further rate cuts if growth slows.

flag Prolonged delays in the India-U.S. trade deal could prompt the Reserve Bank of India to cut interest rates further if growth weakens, Goldman Sachs warns. flag While India’s economy remains resilient with 7.6% real GDP growth in 2025, driven by consumption support from tax cuts, favorable crops, and state transfers, recovery is uneven—affluent consumers are slowing, and middle-income groups face job and AI-related pressures. flag Nominal GDP growth slowed to a six-year low due to low inflation. flag The trade deal’s finalization by Q1 FY27 is expected, but delays beyond that could trigger additional monetary or fiscal measures to sustain momentum.

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