Growth resilient amid global uncertainty, says RBI
Sees policy rate as appropriate, says trade deals boost outlook
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New Delhi: India’s economy continues to post strong growth despite global headwinds such as geopolitical tensions and trade uncertainty, according to the latest bulletin of the Reserve Bank of India released on Friday. The RBI said the recently concluded trade agreement with the European Union and the prospect of an interim trade deal with the United States are expected to help sustain growth momentum over the medium term.
Reserve Bank Governor Sanjay Malhotra voted for the status quo in the key interest rate earlier this month, saying the current policy rate was appropriate, given the buoyant economic growth and benign inflation, according to the MPC meeting minutes released on Friday. The RBI’s Monetary Policy Committee (MPC) earlier this month voted unanimously to keep the policy repo rate unchanged at 5.25 per cent. The RBI has slightly raised its real GDP growth projections for the first two quarters of 2026-27, guided by a positive near-term outlook and the trade agreements.
