West Asia crisis, uncertain monsoon major risks for growth: RBI Governor
RBI Governor Sanjay Malhotra identified the West Asia crisis and monsoon uncertainty as primary risks to India's economic growth. Despite these challenges, the central bank maintains a positive outlook on macroeconomic fundamentals.
Why it matters
Economic policy decisions and inflation forecasts directly impact the cost of living and investment climate in India.
Reserve Bank Governor Sanjay Malhotra has said the West Asia crisis and the expectation of a weak monsoon present significant risks to economic growth.
"Despite global uncertainties, India has witnessed an over 7% growth rate in the past few years. Last financial year, India clocked a growth rate of 7.7% supported by strong and robust macroeconomic fundamentals," he said in an interview to DD News .
The Reserve Bank of India (RBI) has projected a GDP growth of 6.6% for the current financial year despite various challenges, he said.
"Monetary and fiscal policies are robust, and because of that, we are witnessing high GDP growth," the governor added.
On inflation, he said the central bank has raised its inflation forecast to 5.1% for FY27, higher from its earlier estimate of 4.6%.
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