India's economy continues to remain strong despite global challenges such as geopolitical tensions, supply chain disruptions, and uncertain trade conditions, according to the RBI July Bulletin.

The Bulletin says healthy domestic demand and steady performance of the industrial and services sectors have helped the economy maintain growth momentum through June. While retail inflation edged up in June, core inflation (excluding precious metals) remained low. Liquidity conditions improved further, supporting robust credit growth, and India's external sector remained stable with rising foreign investment inflows.

The RBI noted that India continues to be among the fastest-growing major economies. Although the southwest monsoon has been uneven, comfortable foodgrain stocks are expected to help contain any impact on food inflation.

The Bulletin also highlighted strong growth in exports and imports during the first quarter of 2026, reflecting sustained momentum in external trade. This outlook is expected to improve further with the implementation of the India'UK Comprehensive Economic and Trade Agreement and progress on other bilateral trade agreements. External vulnerability indicators remain healthy, while the recent recovery in foreign investment reflects renewed confidence in the Indian economy.

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