US-Iran war, Trump tariff threat: Why India can't take its high growth for granted
India's economy continues to show resilience with strong GDP growth, despite significant external risks like the US-Iran conflict and rising oil prices. However, the government warns that growth cannot be taken for granted due to global economic uncertainty and capital outflows.
Why it matters
As a major emerging market, India's economic stability is a critical indicator for global investors and regional geopolitical health.
India has managed to maintain its tag of being the fastest growing major economy with its GDP growth beating estimates despite the US-Iran war posing major risks. For an economy that is dependent on the world for around 90% of its oil needs, the resilience has not been easy - but the important question now is, will it last?There are several positives in the headlines: foreign exchange reserves at record high, GDP growth beats estimates, industrial production remains robust, automobile sales across rural and urban markets point to broad-based consumption, services activity has strengthened, while electricity and fuel consumption, bank credit and investment-related production continue to show healthy growth.Yet the uneasiness stays: Foreign investors are pulling out money at a record pace, rupee has depreciated to new lows, and oil prices are back above $100 per barrel adding to inflationary pressures.The economy may have managed to sail through rough waters…
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