Part 2: Three decades after the 1991 crisis, India’s record Forex reserves have transformed the country from a crisis-prone borrower into an economy with a formidable external shock absorber. AI generated image Three decades ago, India had so few dollars that it had to pledge gold to avert a balance-of-payments crisis. Today, it sits on a foreign-exchange war chest of more than US$700 billion. The journey from near-bankruptcy to external resilience is one of the quieter succe

As external shocks batter the economy, the RBI and government are choosing caution over activism. In periods of geopolitical turmoil, the task of macroeconomic management shifts from maximizing growth to preserving stability. India entered the second half of 2026 confronting twin pressures from the West Asian crisis and a developing El Niño, forcing policymakers to prioritize resilience over activism. Last week brought a flurry of activity in form of the release of GDP statis

With a record surplus and a lower risk buffer, the RBI’s balance sheet has emerged as India’s strongest defence against global shocks. AI generated image The balance sheet of the Reserve Bank of India (RBI) is the backbone of India’s macro-financial system. Unlike commercial banks driven by profit, the RBI manages its balance sheet as a sovereign policy instrument directly tied to the broader economy. By regulating currency in circulation and foreign exchange reserves, it inf

Mumbai: The undeniable reality of climate change is rapidly transitioning from an ecological warning to a severe economic crisis in India. Global warming is no longer just altering natural ecosystems; it is fundamentally rewriting the rules of the nation's macroeconomic stability. A stark illustration of this shift comes from the HSBC report published on Monday, which highlights how rising surface temperatures and the looming threat of El Niño are directly forcing the Reserve

Amid war-driven oil shocks and a weakening rupee, the RBI opts for caution and reform. India delivered a strong performance in 2025, with growth estimated at 7.6 percent and inflation contained at 1.95 percent, setting the stage for continued momentum into 2026. Benefiting from a ‘Goldilocks’ mix of robust growth and subdued inflation, the government presented a budget focused on long-term stability rather than short-term stimulus. Following last year’s front-loaded rate cut,