New Delhi, July 22 (ANI): India remains among the world’s fastest-growing major economies despite an uncertain global economic environment and has sustained its economic momentum through June, according to the Reserve Bank of India’s (RBI) latest bulletin.
The RBI said the global economy continues to face uncertainty, supply chain disruptions, and fragmented trade relationships. Despite these challenges, India has maintained strong economic activity, supported by solid performance in both the industrial and services sectors.
“Amid these uncertainties, India remains among the fastest-growing major economies across the globe and has been able to sustain the momentum in economic activities through June,” the RBI said in the bulletin.
The central bank noted that the agricultural sector is experiencing an uneven southwest monsoon. However, it said the impact on food inflation is likely to be moderated by comfortable foodgrain stocks.
According to the bulletin, India’s external trade remained strong during the first quarter of the 2026-27 fiscal year, with robust growth in both exports and imports.
The RBI said trade momentum is expected to strengthen further following the implementation of the India-UK Comprehensive Economic and Trade Agreement and progress on other bilateral trade agreements.
The bulletin also stated that India’s external vulnerability indicators remain healthy, while the recovery in foreign investment in recent months reflects renewed investor confidence in the country’s economy.
On the global front, the RBI said the world economy continues to navigate a period of heightened uncertainty.
It noted that the breakdown of ceasefire efforts in West Asia has once again disrupted global supply chains, reversing a fragile recovery. At the same time, investment in artificial intelligence (AI) and technological transformation continues to support global economic activity.
According to the bulletin, easing tensions in West Asia during June helped stabilize financial markets and improve business sentiment. However, the collapse of the truce in early July renewed concerns over global trade and inflation.
The RBI said risks to the global growth outlook remain tilted to the downside because of the possibility of renewed conflict in West Asia, continued supply chain disruptions, and persistent inflationary pressures.
Despite these global headwinds, the bulletin said India has continued to demonstrate resilience, supported by steady economic activity, strong industrial and services sector performance, healthy external-sector indicators, and improving foreign investment inflows. (ANI)
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