India's economy is likely to expand 6.5% this year, making it the fastest-growing major economy in the world despite the rise in global uncertainties, according to the nation's central bank.
“While this rate is lower than in recent years and falls short of India's aspirations, it remains broadly in line with past trends and the highest among major economies,” Reserve Bank of India Governor Sanjay Malhotra said in a speech in Washington on Friday and posted on RBI's website Sunday.
The outlook for global growth has taken a beating as US President Donald Trump's tariffs spark a global trade war. To support growth, the RBI cut interest rates in early April and changed its policy stance to accommodative, signaling more easing.
“At a time when many advanced economies are facing economic headwinds and a deteriorating economic outlook, India continues to offer strong growth and stability making it a natural choice for investors seeking long-term value and opportunity,” Malhotra said.
“Furthermore, our strong domestic demand and relatively lower dependence on exports cushions the Indian economy from external spillovers,” he added.
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