Fluctuations in the global economy pose significant challenges to the global macroeconomic outlook and the Indian economy is not immune, the central bank said in its monthly bulletin.
But the domestic economy has shown resilience so far, the report said, adding that low inflation and strong corporate and banking balance sheets are contributing.
The Reserve Bank of India (RBI) earlier this month raised its forecast for Indian economic growth to 6.8% for the current year.
“Growth prospects remain resilient, supported by domestic factors, despite uncertainties on the external front,” the report said.
“Domestic structural reforms are helping to offset some of the drag on growth caused by weakening external demand conditions.”
The report reiterated the Monetary Policy Committee’s view that current macroeconomic conditions have opened policy space for further growth support.
India is facing punitive tariffs on exports to the US, with President Donald Trump reiterating that these will remain in place unless New Delhi cuts purchases of Russian oil.
High US tariffs on Indian exports are not a major concern for overall growth, the central bank’s monthly report said.
It said goods trade remains resilient but pointed to a sharp decline in exports to the US in September when higher tariffs came into effect.
Published on October 20, 2025
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