RBI says India’s Economy Projected to Grow 6.5% Amid Global Volatility

Despite increasing global uncertainties and weakening international growth prospects, India is poised to record a robust 6.5% economic expansion this year. According to the Reserve Bank of India (RBI), this growth will secure India’s position as the fastest-growing major economy, even though it marks a slight moderation compared to recent years.

Strong Domestic Demand Bolsters Economic Stability 

Reserve Bank of India Governor Sanjay Malhotra, speaking in Washington, emphasised that India’s growth outlook remains encouraging against a backdrop of global volatility. 

He noted that while the 6.5% expansion rate is somewhat lower than previous periods and beneath India’s long-term aspirations, it remains consistent with historical trends and outpaces all other major economies. India’s resilience is supported by vigorous domestic demand and limited reliance on exports, offering a buffer against external shocks.

Monetary Policy Measures to Sustain Growth

In response to the global slowdown and protectionist pressures, notably triggered by US President Donald Trump’s tariff measures, the RBI undertook a policy shift in early April. 

The central bank cut interest rates and adopted an accommodative policy stance, indicating the possibility of further easing if required. Malhotra highlighted that, amid economic headwinds affecting advanced economies, India’s combination of growth, stability, and internal demand continues to attract investors seeking enduring value.

Read More: How RBI Helped Overcome Record India Cash Crunch.

Conclusion

India’s economic trajectory remains positive despite mounting global uncertainties. With firm domestic demand and strategic monetary interventions, the country is well-positioned to maintain its growth momentum and withstand external pressures.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.