The Report discusses the recent geopolitical turmoil which is resetting inflation expectations worldwide as energy prices skyrocket and spillovers are feared. This has put many countries in a difficult spot as they try to negotiate their political, economic, and ideological compulsions to achieve a new equilibrium. An immediate concern for India is on the external front, and the fires at the frontier are being doused at present by the RBI. The Report also discusses domestic growth as a counterbalance to global headwinds, and weighs on what could move the fiscal needle in FY27
