Editor’s note: This is the second of a six-chapter article on the economy of India, published this week. In “lombard street”, published in 1873, Walter Bagehot, then editor of The Economist, wrote ...

Recent and unexpected volatility among a number of prominent financial institutions in Europe and the US were a sharp reminder of the largely unprecedented few years the global economy has endured.

The Reserve Bank of India (RBI), in its latest Financial Stability Report (FSR) released in December 2025, flagged that the Indian economy and financial system are set to face near-term risk from ...