Indian economy is showing an upward momentum in the service sector and a modest growth in industrial activities, accordingly to the monthly bulletin of RBI. The economic activities with improving kharif agricultural season prospects, continuation of strong momentum, as per the report.
RBI Bulletin: Inflation Below 4%, Economic Resilience Amid Global Uncertainty
Headline inflation remained below 4 per cent for the fifth consecutive month in June, driven by deflation in food prices, the bulletin said.
The global macroeconomic environment remained fluid in June and July so far amid geopolitical tensions and tariff policy uncertainties.
“System liquidity remained in surplus to facilitate a faster transmission of policy rate cuts to the credit markets. The external sector remained resilient, backed by ample foreign exchange reserves and a moderate external debt-to-GDP ratio“
-The State of the Economy section of the RBI bulletin said.
India’s Economic Resilience: Modest Industrial Growth, Narrowing Trade Deficit
High-frequency indicators for industrial activity recorded modest growth in June.
“Growth in rural demand remained resilient and was accompanied by a recovery in urban economic activity,” the RBI said.
“Amidst global economic uncertainties, the front-loading of spending by the central and state governments, with a focus on higher capex, is helping to offset some slowdown witnessed in private capex expenditure.”
India’s merchandise trade deficit narrowed in June 2025, due to contraction in both oil and non-oil trade deficit, the RBI report affirmed.
Indian Economy Shows Resilience Amid Mixed Signals: RBI
All in all, amidst a challenging global environment, the Indian economy showed resilience, the central bank bulletin said. “High-frequency indicators suggest stability in aggregate demand. Growth momentum was buoyant for agriculture and services sector while the growth in industrial sector remained modest.”
The high-frequency indicators for overall economic activity showed mixed signals in June. E-way bills and toll collection showed strong growth, while growth in Goods and Services Tax (GST) revenue collections moderated sharply in June, the bulletin noted.
(Inputs from ANI)
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