Economy resilient with downside risks from West Asia conflict: RBI bulletin

The Reserve Bank of India (RBI), in its monthly bulletin released late on Friday, stated that the Indian economy had stayed resilient despite global uncertainties rising from the West Asia crisis.

“The escalation of conflict in West Asia in September has led to a sharp increase in crude oil prices, reigniting concerns of a further disruption in global supply chains and build-up of inflationary pressures,” the RBI stated.

“Alongside, the rise in sovereign yields in some of the major advanced economies has put pressure on government finances. Despite such a challenging global environment, the Indian economy recorded a strong GDP growth in Q1:2026-27,” it said.

“High-frequency indicators through August reflected sustained demand with segments of industry and services sectors displaying resilience,” the RBI added in the bulletin.