‘India relatively less sensitive to external headwinds’

• Reserve Bank of India (RBI) officials highlight that domestic growth engines like consumption and investment are less susceptible to external headwinds.

• The bank warns of potential weakening of global growth due to escalating trade and tariff tensions.

• India is expected to benefit from supply-chain realignments, diversified FDI sources, and engagement with global investors.

• India’s consistent strength in services exports and remittance inflows provides a buffer for the current account.

• The farm sector is boosted by an above-normal southwest monsoon for 2025, potentially boosting farm incomes and regulating food prices.

• Global financial conditions are expected to remain volatile, potentially reinforcing global inflation.