Indian Economy Remains Global Growth Driver Amid Uncertainty: RBI
Despite global economic headwinds, the Indian economy continues to be a key engine of global growth, supported by sound macroeconomic fundamentals and prudent policies, the Reserve Bank of India (RBI) stated in its June 2025 Financial Stability Report.
The RBI highlighted that global financial markets remain volatile due to shifting policies and geopolitical tensions, with risks from elevated public debt and high asset valuations. However, India’s domestic financial system is showing resilience, backed by strong corporate balance sheets and stable financial conditions.
Scheduled commercial banks (SCBs) maintain robust capital buffers and low non-performing asset ratios. Macro stress tests show banks, mutual funds, and clearing corporations are well-positioned to withstand shocks. Non-banking financial companies (NBFCs) also remain stable with improving asset quality.
RBI Governor Sanjay Malhotra noted that inflation remains aligned with targets and domestic drivers are supporting growth, though external spillovers and climate-related risks pose challenges. Regulators remain focused on stability, innovation, and customer protection.
