CashNews.co
To be sure, India has built up sufficient foreign exchange reserves over the last few years that provide a cushion against macro shocks. The Reserve Bank holds over $640 billion in its kitty.
In September, the World Bank projected India’s GDP growth to remain strong at 7% in fiscal 2025. This is despite a subdued external environment, and the dissipation of post-pandemic rebound effects. External risks to the outlook are significant, the global lender stated in its bi-annual India Development Update.
In particular, geopolitical tensions could put pressure on commodity prices and critical supply chains, and resurgent inflation could still keep global interest rates “higher for longer”, it said.