Archive · 7 Oct 2026
RBI Says Indian Economy Can Withstand Global Economic Headwinds
The Reserve Bank of India’s governor said the world economy is facing several problems.
These include conflict in West Asia, trade uncertainty and high borrowing costs.
He also said that concern about the value of some AI-related stocks adds to worries.
India’s economy grew 7.8% in the first quarter, which was more than expected.
Spending by households and investment helped support that growth.
Exports and imports together also made a positive contribution.
But global problems, supply-chain disruptions and weather conditions could make growth harder.
The RBI says it will make policies to help India stay strong.
RBI Governor Sanjay Malhotra said India’s economy remains resilient despite challenging global conditions.
He cited West Asia conflict, tariff uncertainty, high bond yields and possible AI-stock valuation corrections as risks to global sentiment.
India’s economy grew 7.8% in the first quarter, more than expected, Malhotra said.
He attributed growth to resilient private consumption and strong investment, with net exports also contributing positively.
Global uncertainty, supply disruptions, a weak monsoon and strong El Niño conditions may weigh on domestic activity.
- Who
- Reserve Bank of India Governor Sanjay Malhotra.
- What
- Malhotra said India’s economy is resilient amid global risks and cited first-quarter growth of 7.8%.
- When
- In remarks about first-quarter growth; the article does not specify the date.
- Where
- India, against a backdrop of global economic uncertainty.
- Why
- Global geopolitical tensions, trade frictions, elevated commodity prices and tighter financial conditions could weigh on growth and inflation.
Global pressures
Indian resilience
Economic outlook
Global pressures
Global tensions, trade uncertainty, high commodity prices and tighter financial conditions may weigh on India’s growth outlook.
Indian resilience
Malhotra said the economy’s inherent resilience is helping India navigate the challenges.
Growth amid headwinds
Global pressures
Uncertainty, supply disruptions and weather conditions could weaken domestic economic activity.
Indian resilience
First-quarter growth reached 7.8%, supported by consumption and investment, with net exports also contributing positively.
- RBI governor
- Sanjay Malhotra
- First-quarter growth
- 7.8%, described as unexpectedly high
- Growth drivers
- Private consumption and investment; net exports also contributed positively
- Global risks cited
- West Asia conflict, tariff uncertainty, elevated bond yields and possible correction in AI-stock valuations
- Domestic risks cited
- Supply-chain disruptions, a weak southwest monsoon and strong El Niño conditions
- RBI policy aim
- Implement policies that add to the resilience of the Indian economy