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Economy shows resilience to global headwinds with buoyant domestic demand: RBI bulletin
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....conomy shows resilience to global headwinds with buoyant domestic demand: RBI bulletin<BR>FEMA / RBI<BR>Dated:- 25-8-2026<BR>PTI<BR>Mumbai, Aug 25 (PTI) Indian economy demonstrated notable resilience on buoyant domestic demand as well as increased industrial activities, and recovery in monsoon mitigated agriculture sector risks, RBI's latest bulletin said on Tuesday. Presenting an optimistic p....
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....icture amid multiple global headwinds, the bulletin also highlighted that the country is likely to be less affected by the additional 10 per cent US tariffs compared to neighbouring China and some other Asian economies. The global economy is confronting a fragile geopolitical environment and continuing trade-related uncertainties. Nevertheless, the domestic economy has demonstrated notable res....
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....ilience to the ongoing global headwinds, characterised by buoyant domestic demand and rising manufacturing and services activity, an article in the August bulletin said. The southwest monsoon picked up in July after recording a deficit in June. While headline CPI inflation rose fractionally, reflecting food inflation; core inflation remained stable. Further, liquidity conditions eased, sup....
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....porting credit growth and ongoing investment activity. Foreign capital inflows rebounded, reinforcing the external sector, it said. Monsoon activity picked up in July after a deficit in June. "The recovery in southwest monsoon in July helped in kharif sowing reaching closer to normal acreage, partly mitigating some of the risks to the agriculture sector," said the article on 'State of the ....
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....Economy'. With increased rainfall in July, the all-India reservoir storage stood close to its decadal average and higher than the preceding level. On the US Section 301 tariffs that imposed an additional 10 per cent tariff on India, the article said India's major export commodities to the US, such as smartphones, petroleum products and pharmaceuticals, remain outside its purview. "Indi....
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....a is likely to be less affected than some of the Asian economies in the US market, such as China, Vietnam and Thailand," it said. It also said foreign direct investment (FDI) flows improved in June 2026 from the previous month, supported by higher gross inflows. Singapore, the Netherlands, the US, and Canada accounted for around 74 per cent of the total equity inflows. Manufacturing re....
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....ceived the highest share of equity inflows, followed by electricity generation, computer, and communication services. Further, outward FDI continued to register a downward trend for the last two months. About 65 per cent of the outward FDI flows were directed to Singapore, the UAE, and the US. The major sectors witnessing outward FDIs were financial, insurance and business services, manufa....
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....cturing, wholesale/retail trade, restaurants, and hotels - together accounting for 74 per cent of the outward flows. The central bank said the views expressed in the bulletin article are those of the authors and do not represent the views of the Reserve Bank of India. PTI NKD HVA =============<BR> News - Press release - PIB....