ECONOMY
Changing global economic conditions posing challenges to economy
- IBJ Bureau
- Oct 21, 2025
Flux in the global economy presents considerable challenges to the global macroeconomic outlook, and the Indian economy is not immune, the central bank has said in its monthly bulletin.
But the domestic economy has so far exhibited resilience, and low inflation, strong corporate and banking balance sheets are contributing to this.
The Reserve Bank of India (RBI) had earlier this month raised its forecast for growth in the Indian economy to 6.8 per cent for the current year.
“The growth outlook remains resilient, supported by domestic drivers, despite uncertainties on the external front,” it has said.
“Domestic structural reforms are helping to somewhat offset the drag on growth from the weakening external demand conditions,” it has added.
The report has reiterated the Monetary Policy Committee’s view that current macroeconomic conditions have opened up policy space for further supporting growth.
India faces punitive tariffs on exports to the US, with President Donald Trump reiterating that these will stay in place unless New Delhi pares purchases of Russian oil.
High US tariffs on India’s exports do not pose a major concern for the overall growth, the central bank’s monthly report has added.
It has said that merchandise trade remains resilient but pointed to a sharp decline in exports to the US in September, as the higher tariffs kicked in.
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