New Delhi [India], October 22 (ANI): The Reserve Bank of India (RBI), in its latest State of the Economy article published in the October 2025 RBI Bulletin, highlighted that while the Indian economy is not immune to global headwinds, it continues to demonstrate resilience.
The bulletin attributed this resilience to strong macroeconomic fundamentals, including low inflation, robust balance sheets of banks and corporates, adequate foreign exchange reserves, and a credible monetary and fiscal framework. “While the Indian economy is not immune to global headwinds, it has so far exhibited resilience, driven by a focus on strong and durable macroeconomic fundamentals — including low inflation, robust balance sheets of banks and corporates, adequate foreign exchange reserves and a credible monetary and fiscal framework,” the RBI noted.
Amid renewed trade tensions and rising protectionism across advanced economies, the RBI emphasised that the domestic economy remains on a steady path, supported by structural reforms and sustained domestic demand. “The state of flux of the global economy and policies presents considerable uncertainties to the macroeconomic outlook. In this scenario, the need for economic resilience has become a key priority,” the bulletin stated. It also cautioned about simmering trade tensions, particularly in the US and other advanced economies, while noting rising fiscal risks.
The report further highlighted that India’s growth outlook remains strong, with domestic drivers offsetting the drag from weakening external demand. According to the Monetary Policy Committee’s October resolution, India’s real GDP growth for FY2025-26 has been revised upward to 6.8 percent, while CPI inflation is projected at 2.6 percent.
Regarding the weakening of the Indian rupee against the US dollar, the RBI said, “The depreciation in the real effective exchange rate was mainly driven by the depreciation in the nominal effective exchange rate.” The central bank also underscored that adequate foreign exchange reserves and a stable financial system provide a buffer against external shocks, ensuring India remains among the fastest-growing major economies despite the global slowdown. “India’s foreign exchange reserves remained adequate, providing a cover for more than 11 months of goods imports and for about 93 percent of the external debt outstanding at end-June 2025,” the bulletin added. (ANI)
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