Eco has strength to withstand tariff headwinds: RBI report

New Delhi: A strong macroeconomic framework in India’s economy is the strength to face the headwind starting with the global tariff war starting with the global tariff war due to the strong domestic engines of inflation and strong domestic engines, a RBI report said on Tuesday. An article on the state of the economy in the April issue of the RBI bulletin said, “Increase in trade and tariffs and the resulting financial market instability has expressed concern over the weakening of global growth in the near period.”
The report said, “Although the global economic outlook may affect India’s economic growth through weak external demand, domestic development engines are relatively less susceptible to external headwinds.”
It states that an above-normal monsoon forecast for 2025 promoted possibilities for the agriculture sector, which could increase the income of the farm and prevent food prices.
The report stated, “India has been designed for rethinking of supply chain, flexibility with diverse FDI sources and global investors in search of flexibility and scale. It said that India’s frequent strength in exports and remittances flows continues to provide a significant buffer for the current account.
The report said, “Calibrated policy support can help India to convert global instability into an opportunity and strengthen its position in the emerging world economic scenario.” It states that in the near period, the global development approach remains below, as the uncertainty around the tariff and the individual policy reactions of various countries as a result of low investment expenses, consumer confidence can subdue, and may cause recession in global trade.
It states that the decline in global goods prices may reduce price pressure in commodity imported countries, although the currency pressure can partially offset such benefits.