‘Good news’ received on economy, India’s economy remains strong despite global challenges

Indian Economy: The economy of India remains strong with the help of strong domestic demand, good monsoon and fiscal rationalism (the government is to be managed carefully and with responsibility) despite all the global challenges. This has been revealed in a new report of the Finance Ministry.

The economy of the country is moving forward with the help of them

The Finance Ministry said in its ‘Monthly Economic Review June 2025’ released on Monday, 28 July, the Indian economy presents a picture of cautious optimism in mid -2025. Despite the global adverse adversities arising from business tension, geopolitical instability and external uncertainties, India’s large economic infrastructure remains strong. It is helping with strong domestic demand, fiscal discretion and monetary support. India will remain one of the fastest growing major economies.

Professional Forecasters like S&P, ICRA and Reserve Bank of India (RBI) have projected to stay between GDP growth rate 6.2 percent and 6.5 % for FY 26 in their survey. The report further stated that in the first quarter of FY 2026, India’s economic activity was based on strong domestic demand, service sector growth and encouraging signs from manufacturing and agriculture.

Income of rural families will increase

The report also mentions encouraging progress in the agriculture sector due to favorable monsoon. It said, “The favorable south-west monsoon has given a significant boost to agricultural activities, which has come ahead of time and has received more than normal rainfall.

Along with this, due to adequate fertilizer availability and healthy level of reservoirs, kharif crop is expected to be good. Citing NABARD’s Rural Bhavna Survey, the ministry said, “More than 74.7 percent of rural families are expecting their income growth next year, which is the highest since the start of the survey.”

It was also told in the report that even on the inflation front, things remain better, which has given some relief to the policy makers. The ministry said, “The core inflation remains low and overall inflation is far below the RBI’s 4 percent target, which leads to scope for decrease in inflation.”

Warning given in this report

According to the report, Outlook for FY 26 remains roughly positive, but does not ignore the review risks. It warns, “The global recession, especially in the US (which shrunk 0.5 percent in the first quarter of 2025), can reduce the demand for Indian exports.” The Ministry also warned about filling excessively on real GDP estimates in view of wholesale deflation.

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