Mumbai: India’s financial and external sectors continue to draw strength from resilient domestic economic activity despite global uncertainties and heightened geopolitical tensions, the Reserve Bank of India has said.
In its latest bulletin, the RBI noted that the Indian economy was showing resilience even as developments in West Asia had pushed up crude oil prices and created concerns over inflation.
The central bank said economic activity remained supported by domestic demand, while credit and deposit growth had also strengthened. Foreign direct investment inflows were reported to have reached a five-year high.
The RBI also pointed to strong GDP growth in the first quarter of 2026-27 and a moderate current account deficit. However, it cautioned that global developments, particularly geopolitical tensions and movements in crude oil prices, remained important factors for the economic outlook.