India Inc's finance heads took the rate hike rather positively, as the RBI also raised India’s GDP growth forecast to 7.1% for FY27 from its earlier projection of 6.7%. Though they cautioned that domestically, a weak monsoon and El Niño put the Rabi crop and food prices at risk. Externally, crude prices and a rupee above 96 are importing inflation. On top of that, geopolitical uncertainty continues to keep trade routes and input costs volatile.