Indian economy remains resilient despite global trade tensions: RBI Bulletin

Mumbai: Indian economy continues to demonstrate resilience as evident in the robust performance of the agriculture sector and improving consumption despite escalating trade tensions, the RBI March Bulletin said on Wednesday.

The resilience of the global economy is being tested by escalating trade tensions and a heightened wave of uncertainty around the scope, timing, and intensity of tariffs, said an article on 'State of the Economy' published in the Bulletin.

While engendering heightened volatility in global financial markets, these have also caused apprehensions about the slowdown in global growth, it said.

"Amidst these challenges, the Indian economy continues to demonstrate resilience as evident in the robust performance of the agriculture sector and improving consumption," it said.

The reverberations of a tumultuous external environment, however, are being reflected in sustained foreign portfolio outflows, said the authors.

The article further said India's macroeconomic strength to face these challenges is bolstered by a decline in headline CPI inflation to a seven-month low of 3.6 per cent in February 2025 on account of a further correction in food prices.

The RBI, however, said the views expressed in this article are those of the authors and do not represent the views of the Reserve Bank of India.