MUMBAI: India’s economic system continues to show exceptional resilience amid global uncertainty, with progress underpinned by robust agricultural output and recovering consumption, the Reserve Financial institution of India (RBI) famous in its State of the Economy report.
Key sectors – together with agriculture, development, monetary companies, and commerce – stay buoyant. The nation is benefitting from easing inflation, sturdy tax revenues, and sustained power in companies exports.
In the meantime, the central financial institution has responded nimbly to liquidity shortages. In accordance with the report, RBI has pumped in over Rs 5.3 lakh crore of sturdy liquidity by bond repurchases, foreign exchange swaps and lengthy-time period repos.
“The primary revised estimates (FRE) of GDP for FY24 positioned the actual GDP progress at 9.2% – the best in over a decade if we exclude the publish-Covid rebound – demonstrating that in an unsure world, India’s progress story stays a beacon of stability and progress,” the report noticed.
Inflation has moderated, with headline CPI falling to a seven-month low of three.6% in Feb. “The decline in total inflation is anticipated to additional assist restoration in consumption and bolster macroeconomic power, which might act as a bulwark to keep off the myriad of exterior challenges,” the report added.
Main indicators counsel that demand stays sturdy within the remaining quarter of FY25. “Exercise indicators equivalent to e-manner payments and toll collections recorded double-digit (y-o-y) progress in Feb 2025,” the report famous.
But dangers abound. The report flags escalating commerce tensions, tariff uncertainty, and a possible global slowdown as key threats. India stays uncovered to exterior shocks by way of commerce, capital flows, and foreign money actions. Geopolitical tensions and protectionist insurance policies might dampen progress and push inflation larger. “The reverberations of a tumultuous exterior surroundings, nevertheless, are being mirrored in sustained overseas portfolio outflows,” the report cautioned.
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