Economic activity in the current financial year defied expectations of a slowdown, a mainstream sentiment prevalent at the beginning of the year. Rural and urban demand is expected to stay supportive, benefiting from the structural GST rationalization, surplus monsoon outturn, increase in welfare payouts by several states, income tax relief, lower interest rates, and premiumization. Going forward, 2026 will be marked by: shift in consumption towards services and premium products; conservatism in government capex as commitment towards revenue spending and fiscal prudence would get assertive; export diversification with a focus on operationalizing the FTAs. We project GDP growth to moderate towards 6.6-6.8% in FY27 from 7.4% in FY26. India is witnessing one of the lowest inflation rates in decades, with CPI and WPI inflation projected at 2.1% and 0.3% in FY26. In 2026, we expect inflation to start inching up gradually with the favourable statistical base on food items waning;  upturn in industrial metal prices;  continued monetary policy and liquidity support from the US Fed and domestic manufacturers likely passing on higher prices and a lagged impact of the recent rupee depreciation We project CPI and WPI inflation at 3.9% and 3.5% in FY27. For rates, the policy space for incremental accommodation is limited. Real rates are in neutral territory, and there are signs of fiscal stress at the state level. We expect the RBI’s MPC to keep the repo rate unchanged at 5.25% through FY27. However, we expect RBI to infuse Rs 3 tn before March -27. We revise our 10Y g-sec yield forecast to 6.60% for Mar-26 (from 6.30% with upside risk earlier) and project it to remain unchanged at 6.60% by Mar-27.  The BoP position is expected to see a pivot from an expected deficit of USD 14 bn in FY26 to a modest surplus of USD 10 bn in FY27. Current account deficit is projected at 1.3% and 1.2% of GDP in FY26 and FY27, respectively. We revise USDINR forecast for Mar-26 to 90.5 from 89.5 earlier and expect a move towards 93.0 by Mar-27.