The Indian economy remained strong in May 2025 even as global uncertainties continued, according to the Reserve Bank of India’s (RBI) June monthly bulletin.
- Published On Jun 26, 2025 at 06:44 PM IST
Indian economy showed resilience, remained strong in May despite global uncertainty: RBI“>
The Indian economy remained strong in May 2025 even as global uncertainties continued, according to the Reserve Bank of India’s (RBI) June monthly bulletin.
The central bank noted that several high-frequency indicators point to healthy growth in both the industrial and services sectors.
RBI stated, “In this state of elevated global uncertainty, various high-frequency indicators for May 2025 point towards resilient economic activity in India across the industrial and services sectors.”
The report mentioned that key indicators such as e-way bills, GST revenue, toll collections and digital payments showed robust activity, reflecting steady economic momentum.
As per data, GST revenue crossed Rs 2 lakh crore for the second month in a row in May, helped by strong import-related GST collections.
The report also highlighted that India’s real GDP grew by 6.5 per cent in the financial year 2024-25 (FY25), with an impressive 7.4 per cent growth recorded in the fourth quarter.
This growth was mainly driven by a 9.4 per cent rise in fixed investment and strong performance in the construction sector.
Inflation remained under control, staying below the RBI’s target for the fourth straight month in May. This was supported by record levels of crop production, which helped keep food prices in check. The overall domestic price situation continues to be stable, providing relief to consumers.The Purchasing Managers’ Index (PMI) data also showed that India is leading the world in economic activity expansion. The services PMI stood at 58.8 per cent, while the manufacturing PMI was at 57.6 per cent, both indicating strong growth.Financial conditions have also become more supportive of growth. Recent interest rate cuts have helped improve credit flow across sectors. In addition, rural demand is rising, suggesting broader participation in the country’s economic recovery.
India also continues to be a key destination for foreign investment. The country ranked 16th globally in FDI inflows, with USD 114 billion in greenfield investment in digital economy sectors between 2020 and 2024, the highest among Global South nations.
While the overall economic outlook remains positive, the RBI cautioned that global risks such as trade restrictions and geopolitical tensions could impact India’s medium-term prospects. Nonetheless, the overall economic performance in 2025 so far reflects strong resilience.
- Published On Jun 26, 2025 at 06:44 PM IST
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