RBI bulletin: Policies helped build economic resilience

WHILE THE INDIAN economy was not fully immune to the external sector headwinds, coordinated fiscal, monetary and regulatory policies have helped to build resilience in 2025, according to note in the Reserve Bank of India's December Bulletin.

- FE BUREAU

Demand conditions have remained robust of late, with indicators of urban demand strengthening further, the report on "State of the Economy" said.

High-frequency indicators for November have shown that the economic activity has held up, it said, adding that the services sector continued to register strong expansion, while manufacturing showed some signs of deceleration. In Q2FY26, GDP grew 8.2%, the highest since Q4FY24 on the back of robust private consumption and fixed investment. The growth in private consumption was sustained by a robust rural demand and easing inflationary pressures.

However, net exports continued to be a drag on growth. During November, overall demand conditions remained robust and indicators of urban demand strengthened further, building up on the festival season pickup. The report underlined that global uncertainty continued to moderate in November.