India’s Economy Remains Strong Amid Global Uncertainty: RBI
India’s economy continues to show resilience despite global headwinds, according to the Reserve Bank of India’s (RBI) monthly bulletin released on Wednesday. High-frequency indicators for May reflected sustained growth in industrial and services sectors, supported by strong agricultural output and stable financial conditions.
The report highlighted broad-based growth in crop production for 2024-25, which contributed to subdued retail inflation for the fourth consecutive month. Core inflation also remained stable, even as volatile gold and silver prices were excluded.
India’s provisional GDP estimates reaffirmed a 6.5% growth forecast for 2024-25, with a notable pickup in the fourth quarter. Among major economies, India stood out in the Purchasing Managers’ Index (PMI) survey, posting the highest overall activity and a rise in export orders, while other nations saw declines.
Rural demand showed signs of revival, buoyed by record farm output, while consumer confidence remained optimistic. Though credit growth eased in agriculture and services in April, alternative credit channels like external commercial borrowings remained strong.
Equity markets witnessed modest gains despite global volatility, rebounding after June 20. The external sector remained stable with ample forex reserves to cover imports and debt, the RBI noted, underscoring India’s macroeconomic stability.
