• Import substitution strategy: The government is pursuing a long-term strategy over the next decade to reduce reliance on imports, specifically targeting countries like China.
• Sectoral investment announcements: Total investment announcements reached approximately ₹84 trillion last year, with renewables, data centers, and infrastructure accounting for 30% to 35% of the overall capital.
• Interest rate trajectory: Borrowing rates may see some hardening or upward adjustment if inflation rises slightly, though this is expected to represent market normalization rather than outright rate hikes.
• Rupee exchange outlook: The Indian rupee is expected to trade within the range of 95 to 97 against the dollar over the next 2 to 3 years, with no significant appreciation anticipated based on current trends.