India, Aug. 5 -- The war in West Asia is now in its sixth month. Maritime traffic in the region, and, therefore, energy supplies that flow through it, continue to be disrupted. Economic activity, including in India, continues to suffer. And Donald Trump continues to hold the global trading order hostage to his whims.

Despite such a grim environment, India is expected to clock a 7% growth rate in the first quarter of FY27, RBI's Monetary Policy Committee (MPC) said in its resolution released Wednesday. Even inflation, while higher compared to the past, is lower than expected -- largely confined to food and fuel due to supply-side disruptions. The annual growth and inflation forecasts have seen a favourable revision of 10-basis points comp...