RBI Projects India as Fastest-Growing Major Economy Amid Global Uncertainties

The Reserve Bank of India's January bulletin highlights India's economic resilience amid global uncertainties, projecting it to remain the fastest-growing major economy in 2025-26 with an estimated GDP growth of 7.4%. Despite elevated geopolitical risks—including tensions in Venezuela, the Middle East, and the Russia-Ukraine conflict—domestic demand, manufacturing, and services sectors show buoyancy. Economic reforms, export diversification, and increased financial flows to the commercial sector support growth, while inflation remains below tolerance levels. Trade negotiations with multiple countries continue amid policy uncertainties.