Amid Global Flux, India’s Economy Holds Steady: RBI

Despite rising global instability due to trade tensions and geopolitical strife, India’s economy continues to demonstrate strength, according to the Reserve Bank of India’s (RBI) latest monthly bulletin released on Wednesday.

An article titled "State of the Economy" in the RBI’s June 2025 bulletin highlights that several high-frequency indicators for May 2025 point to sustained momentum in India’s industrial and services sectors, even as the global economic landscape remains volatile.

“The global economy is currently navigating through heightened uncertainty, stemming from ongoing trade policy disruptions and intensifying geopolitical conflicts,” the article stated. “In contrast, India’s economic activity remains resilient, as evidenced by data across key sectors.”

The bulletin also noted a broad-based increase in agricultural production during the 2024–25 season, with most major crops recording higher yields.

Inflation, a key concern globally, remains under control in India. Headline inflation has stayed below the Reserve Bank’s target for the fourth consecutive month in May, providing relief to consumers and stability to markets.

On the financial front, the report observed that conditions continue to support the effective transmission of rate cuts, aiding credit flow into the economy and boosting overall demand.

However, the RBI clarified that the opinions expressed in the article reflect the views of the authors and not necessarily those of the central bank.

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