The Reserve Bank of India (RBI) in its April bulletin said 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.

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

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

“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,” it added.

The RBI further noted that the 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 in check.

In terms of the spot foreign exchange market in February, the data said that the RBI sold a net $1.6 billion.

The RBI said it purchased $45.03 billion and sold $46.6 billion. In January, the central bank had sold a net $11.1 billion in the spot market.

The RBI’s net outstanding forward sale stood at $88.7 billion as of end-February, compared with a net sale of $77.5 billion at the end of the previous month, the data showed.