# India's Resilience to Global Shocks Highlighted by DBS Economist Strong consumption and growth offset geopolitical risks - **Source:** [mint - companies](https://www.livemint.com/rss/companies) - **Published:** 2026-09-28 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/ebd4b419-5891-4a51-bed1-195866fdcebb ## India's Economic Resilience DBS Bank's chief economist Taimur Baig highlights India's ability to absorb external shocks and maintain robust growth without significant monetary or fiscal measures. This resilience is attributed to improved macroeconomic fundamentals and strong domestic demand, which continue to offset geopolitical and inflation risks. ## Global Consumption Strength Baig emphasizes that global consumption remains strong despite rising inflation. This tailwind, often overlooked, has helped economies like India, East Asia, and the US maintain decent income levels and demand stability, countering the focus on economic headwinds. ## Monetary Policy Outlook The Reserve Bank of India (RBI) may tighten monetary policy marginally, with expectations of a 25 basis point rate hike to 5.5% in October. This cautious approach aims to balance inflation control with sustaining growth momentum, reflecting India's neutral monetary stance. ## Inflation Trends Retail inflation in India hit a 20-month high of 4.82% in August, driven by elevated energy prices amid geopolitical tensions. Despite this, inflation remains within the RBI's target band of 2-6%, indicating manageable price pressures. ## Global Growth Projections Baig projects global growth to exceed 3% in 2023, with India on a 6.5-7% trajectory. This growth underscores the global economy's resilience to shocks, including the pandemic and geopolitical conflicts, which have been absorbed better than anticipated. ## Corporate Performance India's corporate sector, including Nifty companies, export-oriented firms, and retail giants, has shown strong performance. Auto and two-wheeler sales, along with retail sales, reflect an economy that is thriving despite external challenges. ## Borrowing Costs Rise Baig warns of rising bond yields in advanced economies, signaling the end of zero interest rates in Europe, Japan, and the US. This shift will increase borrowing costs for global companies, potentially leading to margin compression and higher living costs. ## AI Adoption Imperative Baig stresses the necessity for India to adopt artificial intelligence (AI), noting its disruptive potential across all sectors. While the US and China lead in AI investment, India can leapfrog by leveraging public sector involvement to ensure safety and tailored solutions. ## Sources covering this story - https://www.livemint.com/companies/people/tailwinds-under-appreciated-india-can-absorb-global-shocks-and-grow-dbs-bank-group-chief-economist-taimur-baig-11790507179154.html — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._