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Indian economy not immune to global headwinds, says RBI report

Business Standard

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October 21, 2025

The Indian economy is not immune to global headwinds even if it has shown resilience so far, according to the Reserve Bank of India’s (RBI's) monthly report, “State of the Economy”, released on Monday.

- MANOJIT SAHA

The report observed that net foreign direct investment (FDI) had turned negative in August due to moderation in inflows and increase in repatriation.

“While the Indian economy is not immune to global headwinds, it has so far exhibited resilience, driven by a focus on strong and durable macroeconomic fundamentals,” the report said while emphasising the need for economic resilience, which had become a key priority. It said economic fundamentals were strong because of low inflation, the robust balance sheets of banks and companies, adequate foreign-exchange reserves, and a credible monetary and fiscal framework.

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