How RBI Manages Currency Stability Amid Global Economic Risks

Rumki Majumdar, Economist at Deloitte, presents an optimistic view of India’s current macroeconomic environment. She notes the encouraging green shoots in the economy, reflected in easing inflation and reduced rupee volatility. The Reserve Bank of India’s efforts to maintain currency stability amid global uncertainties are highlighted as a key factor. With expectations of a bilateral trade agreement between India and the US, Majumdar believes this could help ease the impact of recent trade tariffs, including the US government’s 50% steel tariff announcement. Despite challenges such as inflationary pressures and export demand fluctuations, she remains confident that timely trade negotiations and RBI’s prudent open market operations will strengthen forex reserves and support economic resilience. This analysis provides a clear picture of India’s economic prospects amidst ongoing global challenges