Mumbai, July 23, 2025 — Despite a fluid global macroeconomic environment marked by geopolitical tensions and tariff policy uncertainties, India’s domestic economy remained resilient during June and July, according to the Reserve Bank of India’s (RBI) July Bulletin.
The article titled State of the Economy noted that economic activity held firm, supported by promising prospects for the kharif agricultural season, sustained momentum in the services sector, and modest industrial growth. The RBI emphasized that these factors collectively helped buffer the economy against external shocks.
Headline retail inflation stayed below 4% for the fifth consecutive month in June, largely due to deflation in food prices. This trend has contributed to a favorable monetary environment, with system liquidity remaining in surplus, thereby facilitating faster transmission of recent policy rate cuts to credit markets.
The external sector also demonstrated resilience, backed by robust foreign exchange reserves and a moderate external debt-to-GDP ratio. These indicators suggest that India’s macroeconomic fundamentals remain sound, even as global uncertainties persist.
The RBI clarified that the views expressed in the Bulletin are those of the authors and do not necessarily reflect the official stance of the central bank.
