India’s Growth Engine Keeps Running Despite Global Speed Bumps – RBI Report

The Reserve Bank of India March 2025 bulletin states the robust performance of India in the midst of the problems in the world, such as escalating trade tensions and financial market volatility. Robust agricultural production, increasing consumption, and ongoing investment in infrastructure in programs like PM Gati Shakti are key drivers. India's GDP growth is projected at 6.7% in FY 2025-26, helped by a decline in headline CPI inflation to a seven-month low of 3.6% in February, driven by falling food prices. Robust services exports and declining merchandise trade deficits also underpin the economy. However, threats remain from extended foreign portfolio outflows and tariff volatility that can impact world growth and inflation. Policymakers are walking a tightrope managing inflation pressures versus threats of economic slowdown. The report underscores the structural strength of India like sound fiscal policies and technological change as growth drivers for the long term. Source: CNBC-TV18, Indian Express