Global economy remains fragile despite US-Iran truce, but India has buffers to weather shocks: RBI

The RBI's June bulletin warned that global economic uncertainties persist despite a US-Iran truce, with potential risks to trade, capital flows and commodity prices. However, it highlighted that India is relatively better placed due to steady growth (7.8% in Q4), anchored inflation (CPI at 3.9% in May, within the 4% target), fiscal discipline, a manageable current account, and forex reserves covering 10 months of imports. The report cautioned that a weak monsoon and any breakdown in US-Iran talks could reignite inflation and growth risks.