While the global buffered economic perspective could affect the economic growth of India through Waker’s external demand, domestic growth engines (consumption and investment) are relatively less susceptible to winds against external, according to the last RBI.
The strength of India to resist winds against, which emanate from the uncertainty surrounding the wars of global rates and individual policy responses from different countries, derive from their robust growth fostered by a strong macroeconomic frame and moderating inflation, with strong internal growth engines, said RBI employees in an article “State of the economy” published in the Balletin.
They pointed out that in the midst of a myriad of challenges raised by this volatile external environment, the Indian economy has exhibited a marked resilience, with a balance of growth to recover from the blip witness to the duration H1 Fy25 and 5.6 percent, Owar-on-Ou-Ou-Ou-Your-On-Year-Your-Your-Your-in GDP GDP GDP Growth Up in Q3.
Key parameters
The employees observed that the accumulated duration of the GST collection of the fiscal year 2015 amounted to ₹ 22.09 Lakh Crore – 9.4 % higher than the fiscal year 2014. They emphasize that despite the global challenges, the robust GST collection in recent times underlines the resilience of internal economic activity.
The manufacturing PMI of India (index of purchasing managers) reached a maximum of eight months of 58.1 in March 2025 (from 56.3 in February), which reflects the acceleration in new orders and production. However, PMI services registered a marginal slowdown in March to 58.5 from 59 in February 2025, although it continued to be strongly in expansive territory. Commercial expectations/Moderate future production evaluations for manufacturing and services.
The authors stressed that India has low external vulnerability as reflected in their external fashion debt ratio or 19 percent and substantial currency reserves (about 11 months of import coverage). They stressed that the position of India as the fastest growing main economy, together with macroeconomic stability, makes it a preferable investment destination in a world characterized by the deceleration of growth and macro vulnerabilities.
In addition, a stable financial sector provides the backbone for sustainable growth, since the Indian financial system has become more robust and several, including banks and NBFCs that are resistant to macrofinancial clashes.
Agricultural sector
Employees evaluated that the prospects for the agricultural sector have been driven by the prognosis of a southwest monzón above normal by 2025, which could increase agricultural income and maintain food prices under control. The main inflation was moderated to a minimum of 67 months of 3.3 percent in March, mainly due to a modernation in food prices.
They observed that the agricultural sector in India is ready to maintain its impulse, supported by the Kharif bumper and the rabi harvest and the highest summer planting amid a comfortable reservoir position, they said. However, it must monitor the risks that emanate from the increase in temperature above normal levels and the probability of thermal waves in the current summer season (April – June).
Industrial and Services Activity
“Industrial and Services Activity Continue to Remain Resilient. Results of the Survey Conducts Representatives from Industry Associations, Lejuding Several Industry Bodies, Credit Rating Agencies, and Banks Reveal Optimism, replace Supported inwaed Bytswined Andwaeded Inward Inwavined Andwavined Andwavined Andwavined Andwavined Andwavined Andwavined Andwavined Andwavined Andwavined Andwavined Inwavined Andwavined Andwaeded Inwatized Inwavined Andwade in Rationed Inwared in Rationed in rationed in rationing in ration.
The employees expressed optimism that in the future, India is prepared to benefit from the realignments of the supply chain, the Diversified FDI sources and the commitment to global investors who seek resilience and scale, given their already established commercial ties.
In addition, the constant strength of India in service exports and remittance entries continues to provide a vital shock absorber for the current account. Employees commented that the support of calibrated policies can help India convert global volatility into an opportunity and strengthen their position in the emerging world economic landscape.
Posted on April 22, 2025
