The Reserve Bank of India (RBI) has projected a resilient economic outlook for the coming financial year despite global uncertainties.
In its annual report, the Reserve Bank of India said India’s economy is expected to remain stable in Fiscal Year 2027, supported by robust domestic demand and banking sector balance sheets, while cautioning that El Niño conditions could pose risks to agriculture.
RBI says the domestic economy will remain resilient in Fiscal Year 2027, with the growth outlook staying steady despite global challenges. India’s growth is being supported by robust domestic demand and lower dependence on exports, while a stable policy environment continues to support economic momentum.
RBI also says corporate and banking sector balance sheets remain healthy, alongside the government’s continued focus on capital expenditure. The central bank, however, cautioned that El Nino may hurt farm output, though a positive Indian Ocean Dipole could offset some of the impact.
