RBI Bulletin Says India Resilient Despite Global Headwinds

The Reserve Bank of India said India’s economy stayed strong in July 2026.

People continued to spend, and factories and service businesses remained active.

Vehicle and tractor sales increased, while petroleum use returned to growth after three months of decline.

Better monsoon rains helped farmers plant more kharif crops.

Conflicts in West Asia and new tariffs from the United States could still hurt world trade and growth.

Prices rose slightly above the target, mainly because of supply problems.

Banks had plenty of money to lend, and credit growth and investment continued.

Foreign money came back into India, and exports and imports grew strongly.

However, India’s merchandise trade deficit widened, partly because of a larger electronic-goods deficit.

The bulletin said its article reflected the authors’ views and not necessarily the official views of the Reserve Bank of India.