India poised to benefit from supply chain realignments: RBI bulletin

India is poised to benefit from supply chain realignments, diversified FDI sources, and engagement with global investors seeking resilience and scale, given its already established trade linkages, said the RBI's April bulletin.

Moreover, India's consistent strength in services exports and remittance inflows continues to provide a vital buffer for the current account, said an article on 'State of the Economy' in the bulletin.

"Calibrated policy support can help India turn global volatility into an opportunity and strengthen its position in the emerging world economic landscape," it said. 

It also noted that escalation of trade and tariff tensions and the resultant financial market volatility have raised concerns regarding the weakening of global growth in the near term.

"Although the dampening global economic outlook could impact India's economic growth through weaker external demand, the domestic growth engines, viz., consumption and investment, are relatively less susceptible to external headwinds," the article said.

Prospects for the farm sector have been boosted by the forecast of an above normal southwest monsoon for 2025, which could augment farm incomes and keep food prices under check, it noted.

The Reserve Bank of India (RBI), however, said the views expressed in the bulletin article are of the authors and do not represent the views of the central bank.