Reserve Bank of India says global shocks could dent growth
India's economy is looking strong at home, but the Reserve Bank of India (RBI) is warning that global issues could put a dent in our progress.
Ongoing conflicts, especially in West Asia, have already led the IMF to cut its global growth outlook for 2026 from 3.3% to 3.1%.
So, even if things seem steady here, what happens worldwide still matters for us.
RBI flags export, oil, inflation risks
The report points out that rising trade barriers and unpredictable policies abroad could hurt Indian exports.
Plus, because we rely so much on imported oil, spikes in oil prices or shipping disruptions can quickly make everything from transport to groceries more expensive.
With global inflation now expected to hit 4.4% this year (up from earlier estimates), the RBI basically says that we are more exposed to international shocks than we might think.