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Abstract
The global economy in 2026 is characterized by heightened geopolitical tensions, trade fragmentation, energy supply disruptions, inflationary pressures, and financial market volatility. The International Monetary Fund (IMF) identifies the ongoing conflict in the Middle East and increasing geo-economic fragmentation as major threats to global growth and stability. Amid these challenges, India has demonstrated remarkable economic resilience through robust domestic demand, prudent macroeconomic management, strong financial institutions, and sustained structural reforms. This study examines India's economic resilience in a fragmented global economy by analyzing growth performance, monetary policy, inflation dynamics, financial markets, banking sector stability, and external sector developments during 2026. The study relies on secondary data obtained from the IMF World Economic Outlook (April 2026) and the Reserve Bank of India (RBI) Bulletin (May 2026).
The findings reveal that India's strong macroeconomic fundamentals, effective inflation-targeting framework, resilient financial system, and increasing foreign investment have enabled the economy to withstand global uncertainties. However, risks associated with energy imports, external shocks, inflation volatility, and financial market fragmentation continue to pose challenges. The paper concludes that strengthening domestic capabilities, deepening financial markets, and enhancing policy coordination are essential for sustaining long-term economic resilience.
Keywords:
Economic Resilience, Global Fragmentation, Inflation, Monetary Policy, Financial Markets, RBI, IMF, India.
Cite Article:
"India's Economic Resilience in a Fragmented Global Economy: Challenges and Opportunities in 2026", International Journal for Research Trends and Innovation (www.ijrti.org), ISSN:2456-3315, Vol.11, Issue 6, page no.a616-a622, June-2026, Available :http://www.ijrti.org/papers/IJRTI2606063.pdf
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ISSN:
2456-3315 | IMPACT FACTOR: 8.14 Calculated By Google Scholar| ESTD YEAR: 2016
An International Scholarly Open Access Journal, Peer-Reviewed, Refereed Journal Impact Factor 8.14 Calculate by Google Scholar and Semantic Scholar | AI-Powered Research Tool, Multidisciplinary, Monthly, Multilanguage Journal Indexing in All Major Database & Metadata, Citation Generator