India’s Q4 FY25 GDP Growth Surpasses Expectations
India’s economy grew by 7.4% in the January–March 2025 quarter, exceeding forecasts. However, the full-year FY25 growth slowed to 6.5%, the lowest in four years. Chief Economic Advisor V. Anantha Nageswaran highlighted strong private consumption and urban employment gains, while cautioning that global uncertainties could impact FY26 growth, projected at 6% .
RBI Enhances Digital Infrastructure and Financial Resilience
The Reserve Bank of India (RBI) announced plans to review digital banking regulations, expand digital lending interfaces, and scale up Central Bank Digital Currency (CBDC) pilots. Additionally, the RBI is launching the Indian Financial Services (IFS) Cloud to bolster data localization and cybersecurity for financial institutions .
The RBI also reported a significant increase in its surplus transfer to the government for FY25, driven by robust foreign exchange operations. This move supports fiscal consolidation efforts .
India Exempts Saudi Sovereign Fund from Investment Caps
India has exempted Saudi Arabia’s Public Investment Fund (PIF) from certain foreign portfolio investment rules, allowing its subsidiaries to invest independently in Indian equities. This decision follows Prime Minister Narendra Modi’s visit to Saudi Arabia and aims to strengthen economic ties, with Saudi Arabia planning to invest $100 billion in India
