India’s economy is projected to grow by 6.5% this year, maintaining its position as the fastest-growing major economy despite rising global uncertainties, according to the Reserve Bank of India (RBI).
RBI Governor Sanjay Malhotra, speaking at an event in Washington on Friday, noted that while the growth rate is slightly lower than previous years and below India’s ambitious targets, it remains consistent with historical trends and is the highest among major economies. His remarks were later published on the RBI’s website on Sunday.
Global growth prospects have weakened, partly due to trade tensions sparked by US President Donald Trump’s tariffs. To boost domestic growth, the RBI recently cut interest rates and shifted its policy stance to “accommodative,” signaling potential further easing.
“At a time when many advanced economies are grappling with economic headwinds and a deteriorating outlook, India stands out as a destination offering strong growth and stability,” Malhotra said. He emphasized that India’s strong domestic demand and limited reliance on exports help shield its economy from external shocks.