Despite global challenges, the state of Indian economy strong: RBI report
New Delhi:
The Indian economy is constantly strengthened despite global instability. The reason for this is better performance and increase in consumption of agriculture sector. This information has been given in the latest monthly bulletin of the Reserve Bank of India (RBI). According to Buletin, increasing trade stress and tariff challenges are taking the strengthening of the global economy. Increasing instability in global financial markets may affect the world’s economic growth rate. However, the Indian economy remains strong amid these challenges.
Relief in retail inflation
In February 2025, the retail inflation came down to 3.6% due to the fall in the prices of food products, the lowest level in seven months. This has strengthened the domestic market. However, due to external instability, the flow of foreign portfolio investors (FPI) remains negative.
Consumption and increase in government spending
Private consumption expenditure is increasing, which reflects strong consumer trust and constant demand. Also, government spending has also increased in recent months, which has gained further momentum to economic development.
The growth rate remains fast
According to the report, the revised actual GDP growth rate of FY 2023-24 has been recorded at 9.2%. This is the fastest growth rate in the last decade (except the year after the corona epidemic).
Manufacturing and service sector strength
In February 2025, the Indian manufacturing sector saw an increase in shopping activity and employment. Apart from this, new businesses and jobs have also expanded in the service sector.
Signs of improvement in agriculture sector
It was reported in the bulletin that the production estimates of food grains and oilseeds have increased in the kharif season 2024-25. At the same time, the production of rabi crops recorded a 2.8% increase, which is mainly due to better reservoir level and more than normal rainfall.
Overall, the Indian economy is moving firmly despite the current global challenges. This pace is expected to continue due to decline in retail inflation, increase in government spending and improvement in agricultural production. However, global financial instability and foreign investment status may be further challenges.
