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Global Threats a Risk to Economic Growth: RBI

Hindustan Times Rajasthan

|

May 30, 2025

A rise in input cost pressures in manufacturing, global protectionism in trade policies, geopolitical tensions and subdued demand pose risks to India's economic growth, the Reserve Bank of India (RBI) said in a report Thursday.

- Shayan Ghosh & Anshika Kayastha

MUMBAI:

RBI's annual report for FY25 said India's economic activity picked up pace in the second half of the last financial year on the back of an uptick in domestic demand, increase in exports of goods and services, and a buoyant agriculture sector.

The global environment has been tough, with tariffs creating a great deal of uncertainty, it said. US President Donald Trump came to power on 20 January, promising stiff tariffs on friends and foes, industrial jobs revival and a loose fiscal policy. In April, he announced reciprocal tariffs on a host of nations, only to announce a three-month pause soon after.

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