The Reserve Bank’s monthly bulletin for March 2025 states that the Indian economy continues to demonstrate resilience despite global challenges. According to an article titled “State of the Economy” in the bulletin, the global economy is being tested by escalating trade tensions and a heightened wave of uncertainty around the scope, timing, and intensity of tariffs.

However, the article noted that the Indian economy has improved despite these challenges, as evident in the robust performance of the agriculture sector and rising consumption. According to the article, India’s macroeconomic strength in facing these challenges is bolstered by a decline in headline CPI inflation to a seven-month low of 3.6 per cent in February 2025, driven by a further correction in food prices. The article also highlights that sound fiscal policies, a well-calibrated monetary framework, and digital transformation initiatives are expected to provide a strong foundation for long-term sustainable economic growth.