Indian Economy Shows Resilience Amid Global Trade Tensions

The Indian economy is showing resilience, buoyed by a strong agriculture sector and increased consumption, despite global trade tensions. This strength is supported by decreasing CPI inflation, despite the challenges of foreign portfolio outflows. The RBI cautions that the article's views are those of the authors.

The Indian economy continues to demonstrate resilience amid escalating global trade tensions, with a noticeable positive impact from the vibrant agriculture sector and improving domestic consumption, according to the latest RBI March Bulletin.

An article in the Bulletin titled 'State of the Economy' highlighted that while the world economy faces heightened uncertainty around tariffs, India is weathering these challenges. However, concerns over global financial market volatility and potential slowdown persist.

Despite the tumultuous external environment causing foreign portfolio outflows, India benefits from a macroeconomic strength poised by a decrease in CPI inflation to 3.6% in February 2025. The RBI reiterated that these insights reflect the authors' opinions and not the institution's official stance.

(With inputs from agencies.)