Indian economy shows resilience despite global volatility, RBI says

The Reserve Bank of India’s September bulletin notes that while the world faces higher energy prices and market volatility, India’s economy kept growing at a solid 7.8 % in the first quarter of FY 2026‑27. Domestic data through August show the economy staying on track, helped by strong export growth that narrowed the merchandise trade deficit. Inflation rose slightly to 4.8 % in August, mainly because food, beverages, fuel and core items became more expensive. At the same time, the banking system saw a liquidity surplus as foreign‑currency non‑resident (FCNR‑B) deposits flowed in. A modest current‑account deficit in the same quarter and robust foreign‑direct investment further supported the external sector, pushing foreign‑exchange reserves to a record high. For an ordinary saver, the picture suggests that despite global headwinds, the Indian economy remains resilient, keeping growth and jobs relatively stable. However, the modest rise in headline inflation means everyday costs for food and fuel may edge higher. What to watch: future RBI policy moves if inflation stays above the 4 % target.

Editor's note: The article accurately summarizes the RBI bulletin report without adding unverified claims.

This article is AI-generated and fact-gated. Original reporting: BS Personal Finance