Indian Economy stays strong despite global weakness

Indian Economy stays strong despite global weakness

Farmers' Inflation Relief
Published on

New Delhi

The Indian economy remains strong even as global growth struggles, according to the Reserve Bank of India (RBI). Trade tensions, uncertain policies, and weak consumer confidence are hurting the world economy, but India has shown resilience through these challenges.

The RBI’s latest Bulletin said that India’s industrial and services sectors kept growing steadily in April. A strong rabi crop harvest and increased sowing of summer crops are expected to support agriculture, helped by good monsoon forecasts for 2025.

Inflation also eased sharply. Headline CPI inflation dropped for the sixth straight month, reaching its lowest level since July 2019. This drop is mostly due to lower food prices. Inflation for agricultural and rural workers fell to 3.48% and 3.53% in April 2025, down from over 7% last year, giving relief to low-income families.

India’s stock markets, which were hit by U.S. tariff news earlier, bounced back later in April. The recovery was helped by strong earnings from banks and financial companies in the fourth quarter.

The RBI also noted changes in currency usage. The growth in notes in circulation from 2014 to 2024 was much slower than in earlier decades. In the past, cash use grew faster than GDP, but now the gap is much smaller.

Interestingly, the RBI linked economic growth to night-time lights seen from space. More nightlights are connected to higher taxes and GDP, suggesting that more formal economic activity means less use of cash.

Overall, the RBI sees strong and steady growth for India, even as the global economy remains uncertain.

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