RBI highlights rural demand, fiscal support, and optimism driving growth, while trade risks and inflation remain manageable.

• Rural demand may rise with better kharif season, higher rural wages, and supportive fiscal and financial conditions.
• Inflation is expected to be below target in Q2, supported by muted food prices and favorable base effects before rising later.
• Trade policy uncertainties with the US remain downside risks, though the overall outlook signals stability in growth and inflation.