India’s urban demand slows, private investment weak; economists expect RBI rate cut as inflation trends below projections.

• Urban consumption hit by weak wages, low savings; rural recovery uneven despite good monsoon support last year.
• RBI sees FY26 inflation below 3.7%; rate cut possible in October or December, economists cite soft CPI prints.
• Private capex stagnant; fiscal support limited, leaving monetary policy as key tool to sustain India’s 6–6.5% growth.