RBI: India's Economy Soars Amid Global Challenges, Strong Growth & Reforms Pave Way

• RBI highlights India as the world's fastest-growing economy, overcoming difficulties and US pressure through coordinated policies.
• Sustained focus on macroeconomic fundamentals and reforms is crucial for maintaining high growth amidst global uncertainties.
• Strong domestic demand fueled India's fastest growth in 6 quarters (Q2 2025-26), with robust economic activity indicated by November data.
• Favorable financial conditions, lower current account deficit, and higher FDI (April-Oct 2025) support economic strength.
• Challenges include global trade policy shifts, FPI outflows due to India-US trade uncertainties, and INR weakening against the dollar.

Why It Matters: India's economy shows robust growth and resilience, but global uncertainties and FPI volatility remain challenges.