More Stories

Informist, Tuesday, Jun. 24, 2025

 

Please click here to read all liners published on this story

--Banking secy: India continues to be beacon of hope despite global headwind
--CONTEXT: Banking secy Nagaraju speaking at Exim Bank Trade Conclave
--Banking secy: India growth prospects remain bright
--Banking secy: Gems, jewellery, pharma exports showing robust growth
--Banking secy: India's fincl system robust to support exports, growth
--Banking secy: India's fincl system have adequate capital, low NPA
 

 

NEW DELHI – At a time when the world economy is troubled by geopolitical uncertainties and significant headwinds emanating from it, India's growth prospects remain bright, Department of Financial Services Secretary M. Nagaraju said Tuesday. "Even amidst all the global headwinds, India continues to be a beacon of hope," Nagaraju said while speaking at the Exim Bank Trade Conclave here. 

 

His comments come against the backdrop of the recent escalation of the conflict in West Asia, which poses significant risks to trade and logistics and a likely second-order impact on India's inflation and growth. Nagaraju, however, said that India's strong macroeconomic fundamentals, coupled with robust exports, will shield the economy from any adverse impact of the geopolitical tensions. 

 

Tensions in West Asia flared up after Israel struck several Iranian military and scientific targets, including nuclear facilities, on Jun. 13 as part of "Operation Rising Lion" to stop the latter from developing nuclear weapons. Iranian media reported multiple explosions in the country, including at its biggest nuclear enrichment facility in Natanz. Israel thereafter declared a state of emergency to deal with the likely retaliation by Iran. The situation worsened after the US on Sunday attacked three nuclear sites in Iran--Fordow, Natanz, and Isfahan. Earlier on Tuesday, US President Donald Trump announced that Iran and Israel have agreed to a ceasefire. The governments of Israel and Iran are yet to confirm the ceasefire.

 

Following Israel's attack on Iran, crude oil prices surged over 13% to $78.50 per barrel on Jun. 16, the highest level since Jan. 27, due to worries about potential disruption in crude oil supply as the conflict intensified. Washington's involvement in the conflict sent fresh jitters across markets, leading to crude oil prices hitting a five-month high of $81.39 per barrel Monday. After the ceasefire announcement Tuesday, oil prices cooled off sharply and at 1144 IST, the August contract of Brent crude oil was at $68.58 per barrel.

Nagaraju said that India's exports, which the commerce ministry is "trying very hard" to integrate into the global value chain, are doing well irrespective of the challenges. Exports from the pharmaceuticals and gems and jewellery sectors are showing resilience, he said. In this endeavour, the finance ministry is committed to extending support through policy, schemes and financial aid, the banking secretary added. "Our financial systems are strong with adequate capital and low non-performing assets," he said. "This gives strong support to India's financial needs."

 

Speaking about growth, Nagaraju said that at a time when agencies are downgrading the global growth outlook, India's growth story remains strong – poised to be the fastest growing economy in 2025-26 (Apr-Mar). The government has projected India's GDP growth to be around 6.3-6.8% in FY26, the prospects of which "remain bright". Earlier this month, the World Bank cut its forecast for India's GDP growth for FY26 to 6.3% from 6.7% forecast in January. India's GDP is estimated to have grown 6.5% in FY25, a four-year low.  End

 

US$1 = INR 86.10

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Reported by Priyasmita Dutta and Sagar Sen

Edited by Tanima Banerjee

 

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

 

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2025. All rights reserved.