India's economy remains resilient amid spike in global uncertainties: RBI

VARIOUS high-frequency indicators for May 2025 point towards resilient economic activity in India across the industrial and services sectors amid the elevated global uncertainty, according to the RBI's monthly economic bulletin released on Wednesday.

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Agriculture showed a broad-based increase in production across most major crops during 2024-25. The domestic prices situation remains benign with headline inflation staying below the target for the fourth consecutive month in May, the report states.

It also highlights that financial conditions remained conducive to facilitate an efficient transmission of rate cuts to the credit market.

The report states that the global economy is in a state of flux, reeling from the twin shocks of trade policy uncertainties and a spike in geo-political tensions.

However, on the domestic front, the provisional estimates released in May have reaffirmed India’s growth to be 6.5 per cent in 2024-25, with a significant sequential pickup in Q4. Various high-frequency indicators for May point to signs of resilient economic activity across the industrial and services sector.