India’s Economy Shows Resilience Amid Global Uncertainty: RBI Bulletin

India’s economy continues to show resilience despite rising global uncertainty, according to the Reserve Bank of India’s (RBI) June Bulletin released on Wednesday.

An article in the bulletin stated that the global economy remains in flux, hit by trade policy changes and growing geopolitical tensions.

High-frequency indicators show strength

The RBI noted that various high-frequency indicators for May 2025 reflect steady economic activity in India. Both the industrial and services sectors showed strong performance.

The article added that agriculture also saw a broad-based increase in output across most major crops during 2024-25.

Stable prices and favourable financial conditions

Inflation stayed below the target for the fourth straight month in May, keeping the domestic price situation stable.

The bulletin further observed that financial conditions remain favourable. This has helped in the smooth transmission of recent rate cuts to the credit market.

The central bank clarified that the views in the article on the ‘State of the Economy’ are those of the authors and do not reflect the RBI’s official stance.

India’s economic outlook remains optimistic, with the RBI projecting a GDP growth rate of 7.2% for FY2025, among the highest globally.

Retail inflation moderated to 4.1% in May, well within the central bank’s comfort zone, allowing policy support to continue.

Credit growth remained strong at 14.2% year-on-year, reflecting healthy demand and improved financial conditions.

Despite global challenges such as geopolitical tensions and trade realignments, the Indian economy appears well-placed to sustain its growth momentum, backed by robust domestic fundamentals and policy-driven stability.

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