Strong Performance of Agro Sector and Gradual Improvement of Domestic Consumption: RBI Report

According to a recent study released by the Reserve Bank of India, the Indian economy is continuing to demonstrate resilience as evident in the strong performance of the agriculture sector and the gradually improving domestic consumption. The report is released amid rising trade tension and tariff issues posed by the Trump administration globally.

The report said, “Domestically, macroeconomic fundamentals remain strong, and economic growth is poised to sustain momentum driven by robust domestic demand, steady investment activity, and ongoing policy-driven infrastructure development along with a pick-up in government spending.”

Financial Year 2025

The RBI report stated that the global economy entered 2025 on a strong note of resilience and is currently caught in a storm of escalating tensions and heightened uncertainty around the scope, timing and intensity of tariffs.

However, robust kharif production between rabi sowing along with higher reservoir levels and seasonal winter correction in vegetable prices have kept food inflation under control. But volatility in commodity prices and weather anomalies still remain potential risks to the overall inflation landscape, according to the RBI report.