The Indian economy is advancing steadily, and is expected to be one of the fastest growing major economies in 2022. The above-normal south-west monsoon, improved reservoir position, government’s capex push, improvement in capacity utilisation, a broad-based revival in credit growth, strong corporate and bank balance sheets, upbeat consumer and business confidence and receding threat of the pandemic are all factors likely to provide impetus to growth. While inflation has eased somewhat from the April high, supported by some correction in global prices, it has ruled above the upper tolerance threshold around the target since January 2022. Monetary policy has moved into the withdrawal of accommodation mode and remains focussed to ensure that inflation returns to the target while supporting growth. The daunting global environment, however, imparts considerable uncertainty to the outlook