“Calibrated policy support can help India turn global volatility into opportunities and strengthen its position in the emerging world economic landscape. India’s continued strength in service exports and remittance inflow rates continues to provide an important buffer for the current account,” the Reserve Bank of India researchers said in its latest economic assessment. These views are not necessarily the central bank’s views.
Economic resilience
The report said that despite global headwinds emitting strong global headwinds due to trade tensions, the Indian economy remains resilient to strong domestic growth impulses and voice macro-difficult problems. The economic outlook for surveys conducted by consumers and businesses on central banks remains optimistic.
Title CPI inflation fell to a 67-month low of 3.3% in March 2025, mainly due to the continued modest food prices. However, core inflation (excluding food and fuel CPI) remained stable at 4.1%, and gold contributed 22.8%. Global commodity prices have recently declined due to slowing expectations for global growth, which has relieved some of the pressure on import inflation.
Going forward, global financial situation may remain turbulent, with emerging market economies vulnerable to feedback loops and spillovers, which could lead to a focus of global inflation.
Relieve stress
However, while monetary pressures may partially offset this gain, the decline in global commodity prices may ease inflationary pressures in commodity importers.
