India's Economy Defies Global Trends with Resilience Amidst Global Volatility

The Indian economy is showing notable resilience against global market volatility, buoyed by agriculture strength and rising domestic consumption. A fall in inflation and steady GDP growth further underscore this stability, despite global trade tensions and financial uncertainties causing declines in foreign investments.

In its latest monthly report, the Reserve Bank of India (RBI) highlighted the Indian economy's resilience in the face of global market volatility. The report credits the strong performance of agriculture and improving domestic consumption as key factors in maintaining economic stability.

Global trade tensions and financial uncertainties continue to challenge economies worldwide. The RBI noted that these issues, coupled with market volatility, have stirred concerns about global economic slowdowns. Simultaneously, foreign portfolio outflows have persisted since October, impacting India's benchmark stock indices such as Sensex and Nifty, which have dropped from historic highs.

Despite these external challenges, India's economic growth remains robust. The National Statistics Office forecasts a steady growth rate of 6.5% for 2024-25, supported by strong private consumption and increased government spending. Key sectors like construction and financial services are thriving, fostering continued economic resilience, as indicated in various high-frequency economic indicators.

(With inputs from agencies.)