Growth in India is showing signs of further strengthening in the coming months, as stated by the Reserve Bank of India’s October bulletin. The bulletin highlights the impetus of festival spending and the potential correction in vegetable prices, which would contribute to an increase in disposable incomes of consumers. In September, India’s retail inflation eased to a three-month low of 5.02% due to softer vegetable prices. However, it remains above the RBI’s medium-term target of 4%. On the external front, the bulletin notes that the current account deficit is modest and is more than financed by the foreign exchange reserves, providing a strong buffer against global spillovers and the slowdown in external demand. The bulletin also points out the stability of the Indian rupee in relation to its peers, despite elevated U.S. treasury yields and a stronger dollar. The movement in the Indian rupee is attributed to the strength of the underlying macroeconomic fundamentals and the availability of buffers. The RBI further mentions the stability of Indian yields, which can be credited to factors such as inclusion in JPMorgan’s emerging market debt index, responsible government market borrowing, and prudent debt and liquidity management. However, the report also cautions that the inflow of funds into Indian debt markets, both passive and active, may introduce associated volatility that needs to be carefully managed. Additionally, the bulletin features an article on measuring uncertainty, where RBI authors discuss the impact of higher uncertainty on output and inflation, and the policy dilemma it poses in terms of supporting growth while controlling prices.