Goldilocks in no danger.

"The RBI's Monetary Policy Committee (MPC) in its second bi-monthly meeting of FY'24 kept the repo rate, the interest rate at which it lends to commercial banks, at 6.5 percent." DH. "After two years of battling inflation and growth pangs, the Reserve Bank of India (RBI) was in for a pleasant surprise when the economic growth trumped its expectations to hit 7.2 percent last month. This came as an icing after the headline inflation fell to 4.7 percent in April, the lowest since November 2021." ET. But, here's the brilliant thing: The RBI did nothing for 24 months. It kept interest rate unchanged at 4% from May 2020 to May 2022. NDTV. The RBI raised its rate by 40 basis points to 4.40% in an emergency meeting on 4 May 2022, ET, one day before the US Federal Reserve raised its rate by 50 basis points on 5 May 2022. Forbes. Since then its hand was forced by the Fed, albeit reluctantly, which raised its Funds rate by 75 basis points on 4 occasions.  "Economists say this is a Goldilocks moment for the central bank - the inflation is not too high, and the growth is also not too low." Goldilocks was a little girl with golden hair in a fairy story for children, who just managed to escape from three bears. "The CPI (consumer price index) inflation is projected at 5.1 percent for FY24." ET. This is still much higher than the RBI's mandate to keep retail inflation at 4%. ET. Inflation is allowed to fluctuate 2% above or below 4% occasionally, but the RBI seems to have taken 6% as its target. "GDP growth for FY24 is 6.5 percent." "India, which was a part of the 'fragile five' in 2013, has long exited that club," wrote Dharmakirti Joshi and Pankhuri Tandon. "The current account deficit (CAD) has been declining since the second half of last year." "Falling crude oil prices, have helped reduce CAD, along with factors such as rising services exports and increased remittances from Indian workers overseas." "Between 2023-24 and 2026-27, Crisil expects India to grow at 6.7% per year. Over this period, S&P Global expects growth to average 1.4% in the US and 1.2% in Eurozone." Although deficit in goods trade has been over 5.5%, it has been offset by trade in invisibles. howindialives.com. Invisibles are comprised of "the trade in services, and other 'current' transfers of foreign currency into India (essentially anything that is not a loan)." "What comprises India's invisibles trade? Almost from the beginning, there have been two main components software/IT and business services exports, and remittances." "India's inward gross remittances touched an all-time high of $107.5 billion during calendar year 2022, RBI Governor Shaktikanta Das announced." ET. In 2001, remittances accounted for 45% of invisibles but have dropped to 25% today, while software and business services share has jumped from 19% to 40% over the same period. So, is Goldilocks here to stay? The Russian Bear is our friend. As the Air India jet showed. Reuters.