Mumbai, Mar 19 (PTI) 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. PTI NKD CS NKD SHW

Economic resilience under trade uncertainty: domestic agriculture and easing inflation underpin stability despite market volatility. The RBI Bulletin emphasises Indian economic resilience amid escalating trade tensions, citing robust agricultural output and improving consumption as stabilising forces, while noting heightened global market volatility and sustained foreign portfolio outflows; it also highlights a decline in headline CPI inflation to a seven month low driven by food price correction, and states the views are those of the authors.