India remains among fastest-growing major economies despite global uncertainty, says RBI Bulletin

India has sustained the momentum in economic activity through June despite an increasingly uncertain global economic environment, reaffirming its position as one of the world's fastest-growing major economies, according to the Reserve Bank of India's (RBI) latest Bulletin.

The central bank said the global economy continues to grapple with supply chain disruptions, fragmented trade relationships and heightened geopolitical uncertainty. However, India's economic fundamentals have remained resilient, with both industrial and services sector indicators showing sustained strength.

"Amid these uncertainties, India remains among the fastest-growing major economies across the globe and has been able to sustain the momentum in economic activities through June," the RBI said in its Bulletin.

The RBI noted that while the southwest monsoon has been uneven so far, the impact on food inflation is likely to remain contained due to comfortable foodgrain stocks.

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The Bulletin also highlighted strong momentum in India's external trade during the first quarter of FY27, with robust growth in both exports and imports. It said the recent operationalisation of the India-UK Comprehensive Economic and Trade Agreement (CETA), along with progress on other bilateral trade pacts, is expected to further strengthen trade performance.

According to the RBI, India's external vulnerability indicators remain healthy, while the recovery in foreign investment inflows in recent months reflects renewed investor confidence in the country's economic outlook.

On the global front, the Bulletin said the world economy remains in a phase of elevated uncertainty. Although easing tensions in West Asia during June helped stabilise financial markets and improve business sentiment, the collapse of the ceasefire in early July has once again raised concerns over global trade, inflation and supply chain disruptions.

The central bank also pointed out that investments in artificial intelligence (AI) and technological transformation continue to provide support to global economic activity despite persistent geopolitical risks.

Overall, the RBI said risks to the global growth outlook remain tilted to the downside due to renewed geopolitical tensions, supply chain disruptions, and lingering inflationary pressures. Nevertheless, India's steady economic activity, robust industrial and services sectors, healthy external position, and improving foreign investment inflows continue to underscore the economy's resilience.