MUMBAI, May 30: The Reserve Bank of India (RBI) has expressed confidence in the country’s economic outlook for the current fiscal year, citing strong macroeconomic fundamentals, healthy corporate balance sheets and continued government spending on infrastructure.
In its Annual Report for 2025-26, the central bank noted that rising energy prices, supply chain disruptions and geopolitical tensions remain key challenges for the global economy. However, it said India is well-positioned to maintain its growth trajectory due to resilient domestic demand and sustained investment activity.
The RBI highlighted that government-led capital expenditure, improving financial sector stability and ongoing trade partnerships are expected to provide support to economic expansion in the coming months.
The report also cautioned that prolonged instability in West Asia and weather-related disruptions could create short-term inflationary pressures and impact growth prospects.