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Key Points

The RBI's June bulletin confirms India's economy stayed resilient in May 2025 despite global uncertainties. Key indicators like GST collections, PMI data, and FDI inflows reflect steady growth. Inflation remained under control for the fourth consecutive month, supported by strong agricultural output. While global risks persist, India's economic fundamentals remain strong with broad-based recovery.

Key Points: RBI Reports India's Economy Remained Strong in May Despite Global Risks

  • GST revenue crossed Rs 2 lakh crore for second straight month
  • Services and manufacturing PMI show robust expansion
  • Inflation stayed below RBI target for fourth month
  • FDI inflows remain strong at $114B in digital sectors
2 min read

Indian economy showed resilience, remained strong in May despite global uncertainty: RBI

RBI highlights India's resilient economic growth in May 2025 with strong GST revenue, PMI expansion, and controlled inflation amid global uncertainty.

"In this state of elevated global uncertainty, various high-frequency indicators for May 2025 point towards resilient economic activity in India. – RBI"

New Delhi, June 26

The Indian economy remained strong in May 2025 even as global uncertainties continued, according to the Reserve Bank of India's (RBI) June monthly bulletin.

The central bank noted that several high-frequency indicators point to healthy growth in both the industrial and services sectors.

RBI stated, "In 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."

The report mentioned that key indicators such as e-way bills, GST revenue, toll collections and digital payments showed robust activity, reflecting steady economic momentum.

As per data, GST revenue crossed Rs 2 lakh crore for the second month in a row in May, helped by strong import-related GST collections.

The report also highlighted that India's real GDP grew by 6.5 per cent in the financial year 2024-25 (FY25), with an impressive 7.4 per cent growth recorded in the fourth quarter.

This growth was mainly driven by a 9.4 per cent rise in fixed investment and strong performance in the construction sector.

Inflation remained under control, staying below the RBI's target for the fourth straight month in May. This was supported by record levels of crop production, which helped keep food prices in check. The overall domestic price situation continues to be stable, providing relief to consumers.

The Purchasing Managers' Index (PMI) data also showed that India is leading the world in economic activity expansion. The services PMI stood at 58.8 per cent, while the manufacturing PMI was at 57.6 per cent, both indicating strong growth.

Financial conditions have also become more supportive of growth. Recent interest rate cuts have helped improve credit flow across sectors. In addition, rural demand is rising, suggesting broader participation in the country's economic recovery.

India also continues to be a key destination for foreign investment. The country ranked 16th globally in FDI inflows, with USD 114 billion in greenfield investment in digital economy sectors between 2020 and 2024, the highest among Global South nations.

While the overall economic outlook remains positive, the RBI cautioned that global risks such as trade restrictions and geopolitical tensions could impact India's medium-term prospects. Nonetheless, the overall economic performance in 2025 so far reflects strong resilience.

- ANI

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Reader Comments

R
Rajesh K.
Great to see our economy showing such resilience! The GST numbers crossing ₹2 lakh crore consistently is impressive. But I hope this growth reaches the common man too - petrol prices are still pinching our pockets. More focus on reducing living costs please!
P
Priya M.
Construction sector growth at 9.4% is fantastic! 🏗️ So many new infrastructure projects visible across cities. But we must ensure quality and safety standards keep pace with this rapid expansion. Last week's building collapse in Mumbai was tragic.
A
Amit S.
Digital payments boom shows how India is leapfrogging in technology! UPI has become our superpower. But rural areas still need better internet connectivity to fully participate in this digital revolution. Hope the government focuses on this in next budget.
S
Sunita R.
Inflation control is the real winner here. As a homemaker, I can see the difference when vegetable prices are stable. The record crop production mentioned in article is making our kitchen budgets easier to manage. Keep it up farmers! 👏
V
Vikram J.
While the numbers look good, I'm concerned about job creation. GDP growth must translate to more employment opportunities, especially for youth. The construction boom is creating jobs but need more manufacturing jobs to absorb our growing workforce.
N
Neha P.
PMI numbers above 57 for both manufacturing and services is outstanding! India is truly becoming the bright spot in global economy. But we must not become complacent - need to keep investing in education and skill development to maintain this momentum.

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