Strong domestic demand helping economic growth stay robust, says RBI

Reserve Bank of India (RBI) has stated in its latest monthly update that the Indian economy, supported by resilient domestic demand, grew at its fastest pace in the last six quarters in Q2:2025-26. On the supply side, services and industrial sectors exhibited robust growth despite the ongoing global trade and policy uncertainties. Available high-frequency indicators suggest that overall economic activity held up in the post-festival month of November. While services activity continued to register strong expansion, manufacturing showed some signs of deceleration. The central bank opined that bolstered by strong domestic demand, the economic growth has been robust. Benign inflation outlook provided adequate space for monetary policy to support growth. Continued focus on macroeconomic fundamentals and economic reforms should help unlock efficiencies and productivity gains to firmly keep the economy on the high-growth trajectory amidst a fast-changing global environment.

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