RBI Says Trade Deals With EU, US & Others Strengthen India’s External Sector Outlook

Reserve Bank of India Governor Sanjay Malhotra has said that India’s macroeconomic fundamentals remain strong, stable and healthy, expressing high confidence in the country’s external sector outlook. Speaking after the latest monetary policy decision, the Governor highlighted robust growth prospects, controlled inflation and a manageable current account deficit, while noting that India has sufficient foreign exchange reserves to comfortably meet external financing needs. Recent bilateral and multilateral trade agreements, including deals with the European Union and other partners, are expected to boost exports, investment inflows and overall economic momentum in the coming years. The RBI has also emphasised that India’s external sector remains resilient, supported by strong services exports, remittances and stable capital flows. The central bank noted that India’s forex reserves provide more than 11 months of import cover, reinforcing financial stability. With GDP growth projected around 7.4% and risks described as balanced, policymakers remain optimistic about the near- and medium-term outlook for the Indian economy, despite global uncertainties.