RBI Bulletin State of the Economy: Resilient Growth, West Asia Risk
Why in the news
The RBI Bulletin’s State of the Economy report called the economy resilient, but flagged the West Asia flare-up that month as a fresh threat to prices and supply chains.
Key facts
- Strong growth in Q1 2026-27; risks: geopolitics, costlier crude, weather uncertainty.
- FCNR(B) deposits of about $13.3 billion initially supported liquidity and the rupee.
- Bank deposits: fastest growth in 15 years (August).
- Net FDI: up 64% to $7.3 billion (July 2026).
| FDI aspect | Details |
|---|---|
| Top sources | Mauritius, UAE, USA (about 70% of equity inflows) |
| Top sectors | Communication, financial, computer services (over four-fifths) |
Terms to know
- FCNR(B): foreign-currency deposits of eligible NRIs with banks.
- Net FDI: gross inflows less repatriation or disinvestment and outward FDI by Indian firms.
- Mauritius tops owing to tax-treaty and routing history, so the recorded source often differs from the true origin.
- FDI is non-debt creating; FCNR(B) is debt-creating.
Exam angle
- FCNR(B): $13.3 billion; net FDI: $7.3 billion, up 64%.