FPJ News Service mumbai

Amidst elevated global trade uncertainty, the Indian economy remained resilient, registering the highest growth among the world’s major economies, with the latest estimates for Q4:2024-25 indicating a sharp pick-up in momentum, the Reserve Bank said in its monthly bulletin released on Wednesday.

The global economy is in a state of flux, reeling from the twin shocks of trade policy uncertainties and a spike in geo-political tensions. Despite this state of elevated global uncertainty, various high-frequency indicators for May 2025 point towards resilient economic activity in India across the industrial and services sectors. Agriculture showed a broad-based increase in production across most major crops during 2024-25. The domestic prices situation remains benign with headline inflation staying below the target for the fourth consecutive month in May. 

Financial conditions remained conducive to facilitate an efficient transmission of rate cuts to the credit market. The optimism from a temporary tariff freeze and trade deals has kept financial market sentiments buoyed in May and early-June 2025. However, following the outbreak of the Iran-Israel conflict, heightened uncertainty and volatility have once again gripped financial markets. Meanwhile, the OECD and World Bank reports released in June have reaffirmed the possibility of a marked deterioration in the medium-term global economic prospects amidst rising trade barriers and restrictions.

On the domestic front, the provisional estimates released in May have reaffirmed growth to be 6.5% in 2024-25, with a significant sequential pickup in Q4. Various high-frequency indicators for May point to signs of resilient economic activity across the industrial and services sectors.

Overall economic activity remained robust in May 2025, with key high-frequency indicators like E-way bills, GST revenue, toll collections, and digital payments showing strong growth. GST revenue collections surpassed the Rs 2 lakh crore mark for the second consecutive month in May, boosted by import-related GST receipts.