28-Sep-2026      14:27

Indian Economy resilient amid re-escalating West Asia tensions, RBI

The Reserve Bank of India’s September monthly bulletin highlighted that the global economy faces renewed pressure from escalating energy prices and heightened volatility in financial markets, compounded by re-emerging geopolitical tensions in West Asia. Despite the persistent global instability, the Indian economy registered a robust expansion of 7.8 per cent in Q1:2026-27. Economic resilience was also apparent throughout August, as indicated by high-frequency data. The merchandise trade deficit contracted, bolstered by vigorous export growth. Headline inflation advanced to 4.8 per cent in August, influenced by the food and beverages category alongside an increase in fuel and core items. System liquidity surplus expanded following FCNR(B) deposit inflows. A contained current account deficit in Q1:2026-27 and substantial FDI flows underpinned the external sector, with foreign exchange reserves attaining a record high.

News source: Capital Market - Live News