Economy resilient despite challenging external environment: RBI report

MUMBAI: (May 29) Robust macroeconomic fundamentals will support the growth trajectory of the Indian economy in the current fiscal year despite headwinds from elevated energy prices, supply chain disruptions, and global markets, the Reserve Bank of India (RBI) said in its Annual Report on Friday.

Healthy balance sheets of the corporate and banking sectors, along with the government’s continued thrust on capital expenditure, bode well for India’s strong growth trajectory, it said.

Geopolitical risk has re-emerged as the dominant drag on global growth in 2026, the report said, adding that the adverse impact of the outbreak of the conflict in West Asia at the end of February 2026 is reflected in forecasts for global growth and inflation.

Source: PTI News

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