Amid war-driven oil shocks and a weakening rupee, the RBI opts for caution and reform. India delivered a strong performance in 2025, with growth estimated at 7.6 percent and inflation contained at 1.95 percent, setting the stage for continued momentum into 2026. Benefiting from a ‘Goldilocks’ mix of robust growth and subdued inflation, the government presented a budget focused on long-term stability rather than short-term stimulus. Following last year’s front-loaded rate cut,