India shines even as global uncertainities weigh down advance economies: RBI

India’s economy has remained resilient even as global economic growth continues to be weighed down by ongoing trade tensions, uncertain policies and muted consumer sentiments, the Reserve Bank of India, said in its latest report.The apex bank said that even though the temporary pause in tariffs provided some relief amid ongoing headwinds, the overall outlook still remains vulnerable.Emerging markets and developing economies, particularly in Asia, are likely to face major impacts, experiencing slower growth due to trade tensions, weak consumer confidence, and policy uncertainty. Furthermore, volatility in financial markets has become a key risk to global economic projections.However, India is showing steady progress, amid this global turmoil. High-frequency data from April indicated that both the industrial and services sectors are holding their ground. "Amidst these challenges, the Indian economy exhibited resilience. Various high frequency indicators of industrial and services sectors sustained their momentum in April,” the report said, quoted by ANI.“India continues to be an economy supported by stability- monetary, financial and political; policy consistency and certainty; congenial business environment; and strong macroeconomic fundamentals.”One standout metric was the record goods and services tax (GST) collections in April, signalling strong economic activity.Agriculture, too, is expected to support the growth trajectory, with a bumper rabi harvest, increased sowing for summer crops, and a favourable southwest monsoon forecast for 2025, all of which combine for a good rural incomes and food production.Inflation trends also encourato be moving in the right direction, with headline consumer price index (CPI) inflation falling for the sixth straight month in April to its lowest level since July 2019, largely due to easing food prices.However, the report also flagged some pressure in domestic financial markets in April, though the conditions improved in the latter half of May, indicating a potential recovery.The automobile sector presented a mixed picture. Wholesale vehicle sales dropped by 13.3% year-on-year in April, primarily due to a high base effect, particularly in two-wheelers. However, tractor sales remained strong, though growth moderated slightly. Vehicle registrations were up 2.9% year-on-year, with the transport segment seeing its fastest growth in six months.Overall, the report said that though economic uncertainty has pushed back even some of the advanced economies, India continues to shine as a safe destination for those looking to invest for a long period.