India's economy is projected to grow at 6.5% in the current year, the fastest-growing large world economy despite increasing global uncertainties that have impacted it, the Reserve Bank of India (RBI) said.
RBI Governor Sanjay Malhotra said in his recent speech that though this rate of growth is slower than in the past few years and below what India hoped, it is according to history and the best major economies can offer.
Malhotra also noted that opportunities for growth worldwide have been heavily influenced by events like trade tensions, led most notably by the trade war triggered by US President Donald Trump's tariffs. The RBI rescued India's growth by cutting interest rates in April and taking on a policy attitude of accommodation, with the implication of further easing.
In spite of the headwinds in the global economy, Malhotra held the argument that India remains a source of strong growth and stability and remains an inviting place to invest for the long term. He further stated that India's strong domestic demand and less dependence on exports give it a cushion against external economic shocks and make the country resilient.
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