Despite the uncertainties in the global economy, marked by tariff wars and increasing geopolitical tensions, the Reserve Bank on Wednesday said the country’s economy portrays a picture of strength, stability, and opportunity.
The provisional estimates released by the National Statistical Office (NSO) said the real GDP grew 6.5% in fiscal 2024-25, boosted by an unexpected 7.4% growth in the final quarter. In his foreword to the June issue of the monthly bulletin, governor Sanjay Malhotra said, “In this global milieu, our economy presents a picture of strength, stability, and opportunity.” The global economy is in a state of flux, reeling from the twin shocks of trade policy uncertainties and a spike in geo-political tensions, the June bulletin said.
“In this state of elevated global uncertainty, various high-frequency indicators for May point towards resilient economic activity in India across the industrial and services sectors,” the bulletin adds, which though are not the official views of the monetary authority. The economy registered the highest growth among the world’s major economies, with the latest estimates for Q4 at 7.4% indicating a sharp pick-up in momentum, it added.
Meanwhile, the optimism from a temporary tariff freeze and trade deals kept financial market sentiments buoyed in May and early-June 2025, the article said. However, following the outbreak of the Iran-Israel conflict, heightened uncertainty and volatility have once again gripped financial markets, it stated.
