India Shows Economic Resilience Amid Global Trade Tensions, Geopolitical Risks

India's economy demonstrates notable resilience amid persistent global challenges such as trade tensions, policy uncertainty, and weak consumer sentiment, as highlighted by the Reserve Bank of India (RBI). Key indicators, including industrial and services sector momentum, record GST collections, and positive agricultural forecasts, contribute to this strength, complemented by encouraging inflation trends and macroeconomic stability. Market experts express cautious optimism about India's growth prospects despite global volatility, noting improved consumption potential due to tax cuts, lower interest rates, and declining crude oil prices, alongside robust corporate earnings and fiscal expansion. India's equity markets have rallied recently, driven by global easing of trade tensions and supportive domestic policies such as RBI liquidity measures and government capital expenditure, although consumption growth has slowed. While geopolitical risks persist, including India-Pakistan tensions and evolving trade dynamics, India remains relatively insulated from tariff pressures compared to other Asian markets, supported by strong domestic economic drivers and policy consistency. Nevertheless, analysts warn that a potential global market pullback remains the biggest risk to India's sustained growth trajectory.