Resilient industrial and services sectors helped Indian economy to sustain despite global pressures: RBI

 
 
The Reserve Bank of India (RBI) has said that the Indian economy has navigated global uncertainties well and continues to remain among the fastest-growing major economies in the world. In an article on the State of the Economy published in its July Bulletin, the RBI said healthy domestic demand and resilient industrial and services sectors have helped sustain economic momentum despite challenges arising from fragile geopolitics and supply-chain pressures.
The Bulletin stated that momentum in external trade continued during the first quarter of the current financial year, with strong growth in exports and imports. It said, recent operationalisation of the India-UK Comprehensive Economic and Trade Agreement (CETA), and progress in other bilateral trade agreements are expected to further strengthen trade prospects. The article mentioned that India’s external vulnerability indicators remain sound and that foreign investment inflows have recovered in recent months, reflecting renewed confidence in the economy. Foreign Portfolio Investors infused 3.1 billion US dollars into equity and debt markets in July up to the 20th of this month, while foreign direct investment remained higher during April and May this year.
The article said, headline Consumer Price Index inflation (CPI) rose to an 18-month high of 4.4 per cent in June from 3.9 per cent in May, driven mainly due to higher food and fuel prices. Food inflation pressures persisted, with increases in the prices of rice, wheat, edible oils and major vegetables including potato, onion and tomato, while core inflation remained largely unchanged.