RBI warns of inflation risk but flags India's economic strength
Business
The Reserve Bank of India (RBI) is warning that inflation could rise thanks to global tensions and unpredictable weather, but India's economy is still showing some serious strength.
Even with higher food prices and financial uncertainty worldwide, India's trade deficit has shrunk and foreign exchange reserves are looking solid.
India 5.5% inflation, IMF 7% growth
Inflation hit 5.5% in September 2026, mainly because of pricier food and fuel.
Still, the International Monetary Fund (IMF) now expects India's economy to grow by 7% in fiscal 2027, thanks to strong demand at home and a booming service sector, even as the rest of the world faces economic challenges.