India stands to gain from the ongoing global supply chain realignments, the diversification of foreign direct investment (FDI) sources, and increasing engagement with international investors seeking stability and scale, according to the Reserve Bank of India’s (RBI) April bulletin. The country’s established trade linkages further strengthen its position, the report added.In addition, India’s robust performance in services exports and remittance inflows continues to act as a crucial buffer for its current account, as highlighted in the ‘State of the Economy’ article within the bulletin.
The RBI noted that with the right policy support, India can turn global volatility into an opportunity, reinforcing its standing in the evolving global economic framework.
While escalating trade tensions and the resulting volatility in financial markets have sparked concerns about a slowdown in global growth, the RBI cautioned that India’s economic expansion might face pressure from weaker external demand. However, the country’s domestic growth drivers, such as consumption and investment, remain less vulnerable to external challenges.Looking ahead, the agricultural sector’s outlook has been further bolstered by the forecast of an above-normal southwest monsoon for 2025, which is expected to enhance farm incomes and help maintain food price stability.The RBI emphasised that the views presented in the article represent the opinions of the authors and not the official stance of the central bank.
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