The Indian economy maintained solid performance in May 2025 despite persistent global uncertainties, according to the Reserve Bank of India’s June monthly bulletin. The RBI noted that high-frequency indicators signaled strong growth in both the industrial and services sectors. “In this state of elevated global uncertainty, various high-frequency indicators for May 2025 point towards resilient economic activity in India across the industrial and services sectors,” the report stated. These indicators demonstrated the economy’s continued recovery trajectory. The central bank tracked key data points to assess the overall health and strength of the Indian economy during the period.
Indian Economy Reflects Robust Demand Through GST And Digital Transactions
High-frequency data such as GST revenue, e-way bills, toll collections, and digital payments showed sustained growth in May 2025. GST collections crossed ₹2 lakh crore for the second month in a row, supported by strong import-related revenues. This figure pointed to strong domestic consumption and industrial movement. E-way bill generation and toll collections also reflected steady logistics activity, indicating uninterrupted supply chains. The rise in digital payments confirmed widespread retail and service sector transactions. These trends confirmed healthy demand and strong momentum in the Indian economy across both consumer and business segments.
Indian Economy Accelerates In FY25 On Strong Investment Activity
India’s real GDP grew by 6.5% in FY25, driven by a robust 7.4% growth in the fourth quarter. Fixed investment increased by 9.4%, with the construction sector showing strong performance. These trends supported the broader expansion of the Indian economy. The RBI highlighted that investment-led growth remained a key contributor to India’s real output. Strong infrastructure spending and capital formation contributed to growth in related industries. This performance underscored the Indian economy’s capacity to sustain long-term development through internal investment and production strength across multiple sectors.
Indian Economy Benefits From Controlled Inflation And Stable Prices
Inflation remained under control in May 2025, staying below the RBI’s target for the fourth consecutive month. Record agricultural output helped maintain stable food prices. The overall domestic price situation showed no major disruptions, according to the RBI. Lower inflation provided relief to consumers and helped maintain purchasing power across households. Price stability also contributed to financial market confidence. The data showed no significant pressure on core inflation. These conditions helped sustain consumption trends and reinforced macroeconomic stability, enabling the Indian economy to continue growing on a firm foundation.
Indian Economy Strengthens Further Through PMI Growth And Investment Inflows
India’s services PMI stood at 58.8% in May, while the manufacturing PMI reached 57.6%, both indicating strong expansion. Credit flow improved across sectors due to recent interest rate cuts. Rural demand also rose, suggesting wider economic participation. India ranked 16th globally in foreign direct investment, attracting $114 billion in greenfield investment in digital sectors between 2020 and 2024. The RBI recognized the Indian economy’s rising status as a key global investment destination. Policy reforms, stable conditions, and sustained demand helped draw continued attention from international investors.
(With Inputs From ANI)
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