According to the RBI Annual Report released in May 2026, which of the following factors supports India's growth prospects for FY27?
- High dependence on exports as a growth driver
- Robust domestic demand and stable policy environment
- Increased foreign direct investment inflows
- Rising external commercial borrowings
Answer: Robust domestic demand and stable policy environment
The RBI highlighted that India's growth prospects are underpinned by strong macroeconomic fundamentals, particularly robust domestic demand, relatively lower dependence on exports, and a stable policy environment. This indicates the economy's resilience stems from internal consumption strength rather than external trade reliance.