The RBI Bulletin has warned that an adverse south-west monsoon could affect India's growth and inflation outlook. While domestic economic momentum remains strong, geopolitical tensions, trade disruptions and uncertainty surrounding the global economy continue to pose significant risks
The RBI Bulletin said India’s near-term economic outlook remains clouded by supply-side pressures and risks arising from the West Asia conflict. However, domestic demand, strong services exports and policy measures are expected to help the economy withstand global uncertainties and external challenges
The RBI bulletin said the West Asia conflict and fresh US trade investigations have increased volatility in global markets. It noted India’s economy remains resilient, with adequate forex reserves and improving economic activity despite rising inflation
The Reserve Bank of India has expressed optimism about India’s economic outlook, saying GDP growth estimates for 2025-26 show the country will remain the fastest growing major economy, supported by domestic demand, export diversification and a resilient banking system
