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Indian Economy Shows Resilience Amid Global Headwinds, Driven by Domestic Demand and Robust Services Exports

October 22, 2025

The Indian economy continues to demonstrate strong resilience despite global uncertainties, as highlighted by the Reserve Bank of India (RBI) in its latest bulletin. Key indicators point to robust domestic demand, moderating inflation, and upward revisions in growth forecasts by international bodies. While facing challenges such as US tariffs and a potential rise in fertilizer prices due to Chinese export suspensions, India's strategy of export diversification and a booming services sector are driving economic growth. The Diwali festive season also witnessed an unprecedented surge in retail, reflecting widespread consumer optimism. Concerns, however, have been raised regarding the stability of the SME IPO market.

Question 1 of 17

1. According to the RBI's October Bulletin, which of the following is NOT listed as a key macroeconomic fundamental contributing to India's economic resilience?

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