India's Economy Shows Resilience Amid Global Turmoil: RBI Report Highlights

The Reserve Bank of India (RBI) has released its latest bulletin that underscores the resilience of India's economic activity across industrial and services sectors, despite the global economy grappling with trade uncertainties and geopolitical tensions.

The RBI's State of the Economy segment reveals conducive financial conditions promoting efficient transmission of recent rate cuts. The central bank has reduced the repo rate by 50 basis points to stimulate growth. Notably, U.S. tariff freezes and trade deals had initially buoyed market sentiments, but the Iran-Israel conflict has rekindled market volatility.

Reports from the OECD and World Bank highlight potential global economic downturns with rising trade barriers. In contrast, India's agriculture sector displays strong production growth, aiding rural demand. Despite global challenges, consumer confidence in India remains steadfast, signaling economic resilience, according to the RBI.

(With inputs from agencies.)