The Indian economy continues to demonstrate resilience despite ongoing uncertainties related to global trade and tariffs, according to the Reserve Bank of India’s (RBI) May monthly bulletin.
High-frequency data from April indicates sustained momentum across the industrial and services sectors, reflecting a steady economic performance. The RBI highlighted promising prospects for agriculture, noting a bumper rabi harvest, increased acreage for summer crops, and favourable forecasts for the southwest monsoon in 2025 — all positive indicators for the farming sector.
On the inflation front, headline Consumer Price Index (CPI) inflation dropped for the sixth consecutive month, reaching its lowest level since July 2019. This easing inflation primarily reflects moderation in key components, supporting overall economic stability.
The RBI’s analysis suggests that despite external pressures from trade tensions and tariff uncertainties, India’s economy maintains robust fundamentals across multiple sectors, bolstered by strong agricultural output and controlled inflation.
