As the global economy faces turbulence, India continues to stand out as a pillar of resilience. Finance Minister Nirmala Sitharaman today highlighted that while domestic demand and public investment remain strong, external shocks – rising oil prices, global tariffs, and geopolitical tensions — could test India’s momentum in the months ahead.
Meanwhile, the Reserve Bank of India (RBI) is reportedly considering easing foreign borrowing rules to help Indian firms raise cheaper funds abroad. This move could boost liquidity and attract capital inflows, especially into infrastructure and manufacturing sectors.
Globally, concerns of “stagflation light” are rising as growth slows but inflation remains sticky. The Allianz Trade report projects global GDP growth at just 2.6% for 2025, with inflation near 4%. Europe’s largest economy, Germany, slightly raised its growth outlook to 0.2%, signaling a tentative recovery across the EU.
On the diplomatic front, Russian President Vladimir Putin’s upcoming visit to India aims to deepen energy and trade cooperation amid global realignments. India’s steady oil imports from Russia underline its independent foreign policy stance and focus on energy security.
Quick Takeaway: India’s stability, backed by policy reforms and capital inflows, makes it a rare bright spot in an uncertain global economy.