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As on : 29-May-2026

Economy - Reports
29-May-2026 16:16

Indian economy shows resilience as global economy faces uncertainty, says RBI bulletin

The global economy in April was clouded by tensions in West Asia, which disrupted energy supplies and trade routes, pushing up costs and creating volatility in financial markets. Commodity prices rose broadly, especially in energy, metals, fertilizers, and food. Equity markets bounced back with tech stocks, but bond yields hardened as inflation concerns grew. Central banks mostly kept interest rates unchanged.

In India, economic activity stayed strong despite global pressures, said the RBI monthly bulletin. Industry and services maintained momentum, while agriculture benefited from good rainfall and healthy reservoir levels. Food inflation pushed CPI inflation up to 3.5% in April, though core inflation stayed steady. Trade deficit widened due to higher crude oil and gold imports. Liquidity conditions remained easy, keeping short-term rates below the policy repo rate, though government bond yields edged higher.

Indian equity markets rebounded in April after a US-Iran ceasefire announcement, but gains were capped by ongoing geopolitical tensions and high oil prices. Foreign portfolio investors continued to sell, though at a slower pace. Foreign direct investment inflows stayed positive, while the rupee weakened in May under pressure from oil prices and global uncertainties.

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