India’s macroeconomic fundamentals continue to remain strong. Going forward, the recent moderation in the international commodity prices should slow down the slump.
The Ukraine war has exposed the imbalance in the global financial system run primarily by the West. When the West decides the course of a currency, others must take it as given.
Cash from international institutions & donors has underwritten Afghanistan’s financial system for decades. Any Afghan govt will come to realise that US is key to financial & economic security.
RBI Governor Shaktikanta Das said emerging markets need to build reserves as buffers against external shocks even at the risk of being added to US' watchlist for currency manipulation.
A lack of global alternatives helps explain some of the dollar’s role. The euro’s status as a reserve currency remains limited & China’s currency is still subject to capital controls.
India’s industrial output growth saw a 10-month low in June, with Index of Industrial Production (IIP) growing by mere 1.5% as against 1.9% in May 2025.
Standing up to America is usually not a personal risk for a leader in India. Any suggestions of foreign pressure unites India behind who they see as leading them in that fight.
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