Reserve Bank of India (RBI) Governor Sanjay Malhotra on Wednesday (October 1) said that while global trade tensions and tariff-related uncertainties, particularly with the United States, could weigh on external demand, a series of domestic reforms and favourable monsoon conditions are expected to offset these headwinds.

“Prolonged geopolitical tensions and volatility in international financial markets caused by risk-off sentiments of investors pose downside risks to the growth outlook,” Malhotra cautioned while unveiling the monetary policy review .

Tailwinds for growth amid external threats

The Governor raised the RBI’s FY26 growth projection from 6.5% to 6.8%, citing structural reforms including GST rationalisation. “The implementation of several growth-inducing reforms, many anno

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