Indian Economy Surges Amid Global Uncertainty: RBI Reports Resilience

The Reserve Bank of India's June bulletin reveals the Indian economy's impressive strength in May 2025 amidst ongoing global uncertainties. High-frequency indicators such as industrial output and services activities displayed robust growth, underscoring the nation's economic resilience.

According to the RBI, GST revenue surpassed Rs 2 lakh crore for a second consecutive month, driven by strong import-related collections. India's real GDP rose by 6.5% in FY25, buoyed by a significant 7.4% growth in the last quarter. This vigorous economic expansion was largely fueled by a 9.4% rise in fixed investments and a thriving construction sector. Inflation rates stayed controlled, thanks to record crop production that kept food prices stable.

The PMI data positions India as a leader in global economic expansion, with a services PMI of 58.8% and a manufacturing PMI of 57.6%. Lower interest rates have boosted credit flow, and a surge in rural demand indicates a broader economic recovery. The nation remains a top destination for foreign investment, standing 16th in FDI inflows. Despite a positive outlook, the RBI warns of potential risks from trade restrictions and geopolitical tensions, yet India's performance in 2025 showcases remarkable resilience.

(With inputs from agencies.)