India's Economic Growth Trajectory: Poised to Lead through FY26

India is set to maintain its status as the fastest growing major economy even into the financial year 2025-26, the Reserve Bank of India (RBI) confirmed on Thursday. A positive inflation outlook combined with moderated GDP expansion suggests that monetary policy will need to be growth-supportive, according to the RBI's annual report.

The report identified a range of risks affecting both the growth and inflation outlook, such as geopolitical tensions, global financial market fluctuations, and trade fragmentation, yet also noted easing supply-chain pressures and favorable monsoons as positive influences on the inflation scenario.

India's trade policies, along with inward remittances and services exports, are positioned to mitigate external headwinds, ensuring a manageable current account deficit. The RBI's confidence in maintaining inflation targets amid existing risks highlights the robustness of India's economic strategies moving forward.

(With inputs from agencies.)