India, Oct. 1 -- The Reserve Bank of India (RBI) now believes that the Indian economy will grow at 6.8% in 2025-26. This is higher than RBI's 6.5% projection made in August. It has also made a downward revision to its inflation forecast for the current fiscal year from 3.1% in August to 2.6% now. This is the lowest-ever inflation, although within the 2%-6% target band of RBI, since the current series started in 2012-13. And a 6.8% growth rate is above India's potential growth rate.

These numbers paint a very good picture for the macro economy that seems to be doing good in terms of growth without triggering inflation. Is the Indian economy in the so-called Goldilocks state, where it is neither too hot nor too cold? There is good reason t...