New Delhi, May 22 (IANS) India’s economic activity exhibited resilience in April, with industrial and services sectors maintaining strength across several segments even as the global economy continued to be shadowed by uncertainties in West Asia, according to the RBI’s monthly bulletin released on Friday.
Industrial and services activity stayed strong in many segments. Early results of listed private non-financial companies for Q4:2025-26 also showed an improvement in business performance over the previous quarter, with aggregate sales and operating profit recording a double-digit growth, the bulletin stated.
It highlighted that in the agriculture sector, rapid progress of summer sowing was supported by above normal pre-monsoon rainfall and sufficient reservoir storage levels. However, a higher probability of above-normal minimum temperatures and unseasonal rains in some parts of the country could pose risks to the harvesting of remaining rabi crops. The current public foodgrain stocks remain well above the buffer norms ensuring domestic food security.
In March, net foreign direct investment remained positive for the second consecutive month. Foreign portfolio investors continued to remain net sellers in April and May, though the pace of outflows moderated, the bulletin observed.
CPI inflation rose to 3.5 per cent in April, driven mainly by food inflation, while core inflation remained steady indicating limited pass-through of higher input cost conditions. Although headline inflation remains firmly within the tolerance band, the pass through to domestic prices needs to be monitored, it pointed out.
The RBI bulletin also stated that the conflict in West Asia continued to exert pressure on commodity markets, global trade flows and supply chains, contributing to the volatility in financial markets. India has entered this phase from a position of macroeconomic strength. Domestic demand continues to be the key driver of growth. However, the near-term outlook is somewhat clouded by supply side pressures.
The financial conditions, crude oil prices and capital flows continue to pose challenges to the external sector outlook. Nevertheless, robust services exports, positive net FDI flows, foreign exchange reserve buffers and a number of proactive policy measures undertaken by the Government and the Reserve Bank are likely to cushion the Indian economy against external headwinds.
–IANS
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