<ul><li>Economists forecast downside risks to India's growth, estimating a potential cut of 30-60 basis points for FY26.</li><li>Direct impact of the higher tariffs on India's exports to the US is expected to be less severe, but weak global trade momentum and a slowdown in US growth may indirectly impact demand and corporate confidence.</li><li>The implementation of a trade deal by fall 2025 may help mitigate the downside risk from higher tariffs.</li><li>Economists expect the Monetary Policy Committee to cut rates by 25 basis points and change its stance to 'accommodative' to support domestic demand.</li></ul>

Economists see downside risks to growth, expect MPC to go for deeper rate cuts

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