MUMBAI, May 22 (Reuters) – India’s economy remains resilient amid global uncertainties and the outlook for the South Asian nation is one of “cautious optimism”, the RBI (Reserve Bank of India) said in its monthly bulletin released late on Wednesday.
New Delhi is in the process of seeking to clinch a trade deal with the U.S. within the 90-day pause on tariff hikes announced by President Donald Trump on April 9 for major trading partners, including a 26% tariff on India.
“The global economic outlook remains clouded amidst shifting policy landscapes and lingering vulnerabilities,” the Reserve Bank of India said.
“India stands well-positioned to navigate the ongoing global headwinds with confidence, ready to harness emerging opportunities and consolidate its role as a key driver of global growth.”
In April, the RBI lowered its key policy rate for a second consecutive time, and signalled more cuts by changing its monetary policy stance to ‘accommodative’ from ‘neutral’.
Inflation pressures have eased significantly and the consumer price index is poised for a durable alignment with the target in 2025-26, the RBI said in the bulletin.
India’s retail inflation remained below the RBI’s 4% target for the third consecutive month in April, slipping to 3.16%, the lowest level since July 2019.
“While policy uncertainty has intensified, supply side pressures on the global economy are showing signs of relenting,” the RBI said.
In an article on the impact of weather anomalies on vegetable prices, the RBI bulletin said that temperature anomalies have increased in recent periods, raising the need for faster adoption of temperature-resistant crop varieties to support the objective of price stability.
