Reserve Bank of India Governor Sanjay Malhotra<\/strong> has expressed strong confidence in India\u2019s economic performance, dismissing recent critical remarks by US President Donald Trump<\/strong>, who labeled India as a \u201cdead economy.\u201d Malhotra emphasized that India\u2019s contribution to global economic growth<\/strong> surpasses that of the US.<\/p>\n \u201cWe contribute about 18% to global growth<\/strong>, which is higher than the US\u2019s estimated contribution of around 11%,\u201d Malhotra stated, reaffirming India\u2019s robust economic position.<\/p>\n India is projected to grow at a rate of 6.5% in 2025<\/strong>, significantly higher than the IMF\u2019s global growth estimate of 3%<\/strong> for the same year. Malhotra noted that India\u2019s aspirational growth should exceed this projection, recalling that the country\u2019s historical average growth rate has been about 7.8% annually<\/strong>.<\/p>\n Despite rising international trade tensions, the RBI decided to keep the key repo rate steady at 5.50%<\/strong> during its recent Monetary Policy Committee meeting, maintaining a cautious but optimistic stance.<\/p>\n Addressing concerns about the escalating trade conflict triggered by US tariffs on Indian goods, Malhotra remarked that the Indian economy would not face significant disruption unless India faces retaliatory tariffs<\/strong>. \u201cWe remain hopeful for a friendly resolution<\/strong>,\u201d he added.<\/p>\n The US has increased tariffs on Indian imports from 10% to 25%, with threats of further penalties linked to India\u2019s purchases of Russian oil and military equipment, adding complexity to the trade scenario.<\/p>\n Malhotra highlighted several domestic strengths that underpin India\u2019s growth outlook, including:<\/p>\n Strong domestic demand<\/strong><\/p>\n<\/li>\n Forecast of above-average monsoon rains<\/strong><\/p>\n<\/li>\n Recovery in agriculture and rural consumption<\/strong><\/p>\n<\/li>\n<\/ul>\n These factors are expected to sustain India\u2019s GDP growth in the near term despite global uncertainties.<\/p>\n Following the RBI\u2019s announcement to hold interest rates, stocks sensitive to rate changes\u2014including auto, realty, and banking sectors<\/strong>\u2014experienced a decline. Notable stock movements on the BSE included:<\/p>\n Bosch<\/strong> down 4.85% to \u20b938,617.75<\/p>\n<\/li>\n Hyundai Motor India<\/strong> down 1.95% to \u20b92,146.15<\/p>\n<\/li>\n Hero MotoCorp<\/strong> down 1.31% to \u20b94,482.60<\/p>\n<\/li>\n Apollo Tyres<\/strong> down 1.07% to \u20b9435.10<\/p>\n<\/li>\n Mahindra & Mahindra<\/strong> down 0.83% to \u20b93,183.50<\/p>\n<\/li>\n<\/ul>\n RBI Governor Sanjay Malhotra affirms India\u2019s growing role in global economic growth<\/strong><\/p>\n<\/li>\n India\u2019s GDP growth forecast at 6.5% for 2025<\/strong>, outpacing global average<\/p>\n<\/li>\n US tariff hikes add uncertainty, but RBI expects limited economic impact without retaliation<\/p>\n<\/li>\n Strong domestic demand and agriculture recovery<\/strong> support economic resilience<\/p>\n<\/li>\n Rate-sensitive sectors saw market declines after RBI held interest rates steady<\/p>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":" RBI Governor Responds to Trump\u2019s Remarks on Indian Economy Reserve Bank of India Governor Sanjay Malhotra has expressed strong confidence in India\u2019s economic performance, dismissing recent critical remarks by US President Donald Trump, who labeled India as a \u201cdead economy.\u201d Malhotra emphasized that India\u2019s contribution to global economic growth surpasses that of the US. \u201cWe […]<\/p>\n","protected":false},"author":1,"featured_media":391,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","footnotes":""},"categories":[55],"tags":[678,681,683,684,686,685,677,682,679,680],"yoast_head":"\r\nIndia\u2019s Growth Forecast and Economic Outlook<\/h2>\n
Impact of US Tariffs and Trade Relations<\/h2>\n
Domestic Factors Supporting Growth<\/h2>\n
\n
Market Reaction to RBI\u2019s Policy Decision<\/h2>\n
\n
\nKey Takeaways:<\/h3>\n
\n