Indian economy showed resilience, remained strong in May despite global uncertainty: RBI
The Indian economy remained strong in May 2025 even as global uncertainties continued, according to the Reserve Bank of India's (
RBI
) June monthly bulletin.
The central bank noted that several high-frequency indicators point to healthy growth in both the industrial and services sectors.
RBI stated, "In this state of elevated global uncertainty, various high-frequency indicators for May 2025 point towards resilient economic activity in India across the industrial and services sectors."
The report mentioned that key indicators such as e-way bills,
GST
revenue, toll collections and digital payments showed robust activity, reflecting steady economic momentum.
As per data, GST revenue crossed Rs 2 lakh crore for the second month in a row in May, helped by strong import-related GST collections.
The report also highlighted that India's real GDP grew by 6.5 per cent in the financial year 2024-25 (FY25), with an impressive 7.4 per cent growth recorded in the fourth quarter.
This growth was mainly driven by a 9.4 per cent rise in fixed investment and strong performance in the construction sector.
Inflation remained under control, staying below the RBI's target for the fourth straight month in May. This was supported by record levels of crop production, which helped keep food prices in check. The overall domestic price situation continues to be stable, providing relief to consumers.
The Purchasing Managers' Index (
PMI
) data also showed that India is leading the world in economic activity expansion. The services PMI stood at 58.8 per cent, while the manufacturing PMI was at 57.6 per cent, both indicating strong growth.
Financial conditions have also become more supportive of growth. Recent interest rate cuts have helped improve credit flow across sectors. In addition, rural demand is rising, suggesting broader participation in the country's economic recovery.
India also continues to be a key destination for foreign investment. The country ranked 16th globally in FDI inflows, with USD 114 billion in greenfield investment in digital economy sectors between 2020 and 2024, the highest among Global South nations.
While the overall economic outlook remains positive, the RBI cautioned that global risks such as trade restrictions and geopolitical tensions could impact India's medium-term prospects. Nonetheless, the overall economic performance in 2025 so far reflects strong resilience.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
United News of India
21 minutes ago
- United News of India
CEL playing a leading role in data centers and green energy: CM Yogi
Ghaziabad, Jun 26(UNI) Uttar Pradesh Chief Minister Yogi Adityanath on Thursday described Central Electronics Limited (CEL)'s journey as a symbol of India's industrial revival and self-reliance. He said that CEL is a key part of Prime Minister Modi's vision for a developed India by 2047, and that through organizations like these, new India is moving forward with strength, technology, and confidence. CM Yogi and Union Minister of State (Independent Charge) for Science & Technology, Dr. Jitendra Singh, laid the foundation stone for the CEL-ESDS Green Data Centre in Sahibabad, Ghaziabad on Thursday. During the event, the CM expressed happiness about the new greenfield data centre being developed by CEL. He said, ' It is a strong step toward achieving PM Modi's goal of net-zero emissions by 2070.' He also mentioned that Uttar Pradesh will generate 20,000 megawatts of renewable energy by 2027, with CEL playing a key role in this mission. At the Golden Jubilee celebration of Central Electronics Limited (CEL) in Ghaziabad and the foundation stone-laying ceremony of its new data center, CM Yogi took part in the Puja and also visited the exhibition, where he was given information about the data center and its operations. He also planted a sapling as part of the 'Ek Ped Maa Ke Naam' campaign. During the event, CEL also handed over a cheque worth Rs 21 crore to the Government of India, and an MoU was exchanged between CEL and Multi Infra for a 200 MW solar module project. Speaking at the event, the CM described CEL's 50-year journey as an inspiring success story, saying that the company has now entered the "Amrit Kaal" and is playing a key role in fulfilling PM Modi's vision of a developed India. He recalled that there was a time when CEL faced uncertain days and was even put on the list for disinvestment. 'However, today CEL has become a profit-making 'Mini Ratna' company and is handing over dividends to the government. This change is an inspiration for Atmanirbhar (Self-Reliant) India,' he added. The CM praised CEL for its innovations in sectors like railways, defence, renewable energy, and education. He said that CEL's technology and creativity are making the nation stronger. Highlighting its contributions, the Chief Minister noted that CEL plays a key role in areas such as smart classrooms, signaling systems, renewable energy modules, and defence equipment. He also mentioned that CEL made India's first solar photovoltaic module in 1974 and is now setting up the country's first greenfield data center. Talking about the Defence Manufacturing Corridor, he said that equipment for BrahMos missiles is also being produced with the help of organizations like CEL. Referring to Operation Sindoor, CM Yogi said that BrahMos and Akash missiles were recently used against Pakistan. 'We can say that the capacity of both these missiles have been 'tested' in Pakistan and 'trusted' worldwide,' he remarked. The Chief Minister also linked CEL's progress to the changing image of Uttar Pradesh. He said that in the past eight years, the state's economy has grown 2.5 times, lifting 6 crore people out of poverty. Investors are now eager to invest in Uttar Pradesh, which was earlier known as a backward state. 'Today, Uttar Pradesh is becoming the growth engine of the country,' he added. Out of Rs 50 lakh crore worth of investment proposals, Rs 15 lakh crore of investments have already started production after the groundbreaking ceremonies. Speaking about CEL's journey, CM Yogi said, 'Your childhood was good, then you faced some challenges in your youth, but now you have entered your Amrit Kaal.' This is a period of the next 25 years dedicated to making India self-reliant and developed. He added that Prime Minister Modi has often stressed the need to connect educational institutions with industry, and Uttar Pradesh has excellent institutes like IITs, IIMs, universities, and central laboratories to help achieve this goal. Union Minister of State (Independent Charge) for Science and Technology, Dr. Jitendra Singh, said that CEL has its own legacy. The company invented the first solar cell back in 1970, and now, 50 years later, it is about to set up a green data center. He praised Chief Minister Yogi Adityanath, saying, 'Your name is already part of history for the construction of the Ram Temple in Ayodhya, and I'm happy that two institutions under my ministry also contributed to it.' He also announced that the country's first quantum unit will soon be established at IIT Noida. In addition, a biotechnology park will be set up near Lucknow, and a two- or three-day startup conclave is planned for August. UNI MBD RKM
Economic Times
23 minutes ago
- Economic Times
India to remain a bright spot amid global uncertainty: World Bank's Auguste Kouame
Despite global economic uncertainties, India is projected to maintain strong growth, with a GDP increase of 6.3% in FY26, supported by its robust domestic economy and lower trade dependency. However, challenges remain, including stagnant manufacturing growth and increasing divergence among states. Artificial intelligence, energy, and skill development are identified as key growth drivers. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Popular in Economy 1. Icra retains FY26 GDP forecast at 6.2% Tired of too many ads? Remove Ads India is expected to remain a bright spot in the global economy despite trade and policy uncertainty, economists and experts noted at a panel discussion on Thursday.'India has a strong domestic economy and remains a bright spot in the global economy,' said Auguste Kouame, country director for India at the World Bank India's gross domestic product (GDP) is projected to grow by 6.3% in FY26, according to the World Bank. The Indian economy expanded by 6.5% in lower trade dependency provides it buffer against global volatility, panelists noted speaking at the India Policy Forum 2025 by NCAER.'India will be less affected than other countries in Asia as trade accounts for 40% of GDP, while for others it is 80%,' said Joyce Chang, managing director and chair of global research, J.P. April, the United States announced tariffs on around 60 countries worldwide, including India, which was hit by a 26% tariff rate. While this has been paused for 90 days until July 9, the baseline tariff of 10% remains in place.'A tariff is like a tax that will be borne mostly by the consumers,' said the United States, this could be an additional tax of $400 billion and offset growth by 0.6-0.7 percentage points, she World Bank projects US economic growth to grow to 1.4% in 2025 compared to 2.8% in emphasized the importance of India's role in the global economy, particularly within the Global South. 'The global economy stands on four key anchors – US, China, European Union, and Global South, and India will play a big role in the global south coalition,' he India aims to become an advanced economy by 2047, there is a puzzle which policymakers are struggling with, noted Prachi Mishra, director and head, Ashoka Isaac Center for Public Policy, Ashoka University.'Manufacturing's share in GDP has remained stagnant over the years, and the paradox is that despite being labour-abundant, India's domestic production and exports are becoming increasingly capital intensive,' Mishra accounts for around 17% of India's also raised concern that divergence among states has global headwinds, panelists believed that the financial markets would remain ahead, Kouame identified that artificial intelligence (AI), energy, and skill development are some of the key areas that will drive growth for the global economy.
New Indian Express
26 minutes ago
- New Indian Express
June sees 8 large IPOs, 30 SME issues raising over Rs 19,000 crore
MUMBAI: The second half of June has seen a raining of IPOs as the primary market activity sharply rebounded after a drought in the previous two months. The current month has seen eight large IPOs, led by the largest NBFC issue in HDB Financial's Rs 12,500 crore issue, and as many as 30 SME issues hitting the street raising over Rs 19,000 crore. Eight mainboard IPOs have collectively raised around Rs 17,700 crore (only HDB is ongoing and closes Friday and all other issues have already been closed), the highest monthly fundraising via IPOs in the past six months. In the SME segment, the month saw as many as 30 IPOs, raising around Rs 1,330 crore, a nine-month high. The SME space activity is interesting as the Sebi has done a lot of regulatory tightening after many incidents of fund miss-use and price-rigging at the pre-issue level by promoters and i-bankers. Analysts attribute the surge in IPOs to the regulatory timelines imposed by Sebi, prompting companies to expedite listings to avoid re-filing amid market uncertainty.
