New Delhi, April 8 -- India needs to keep a constant vigil on ongoing geopolitical developments, even as some economic indicators remain favourable, Reserve Bank of India (RBI) governor Sanjay Malhotra said on Wednesday.

Malhotra said before the outbreak of the West Asia war, India's macroeconomic fundamentals exuded confidence with buoyant growth and low inflation. Conditions, however, turned adverse in March with the widening of the conflict zone and its intensification.

India's external debt to GDP ratio increased to 20.4% at end-December 2025 from 19.8% at end-March 2025

Malhotra said global trade is expected to witness a slowdown during 2026 compared to 2025. "This is due to the lingering tariff-related uncertainties despite the (...