RBI report
The Indian economy has weathered external uncertainties well and the improvement in foreign investment in recent months indicates a return of confidence. This was said in the bulletin issued by the Reserve Bank of India on Wednesday. An article published in the July Bulletin of the Central Bank said that there is a lot of uncertainty in the global economy due to uncertainty in the world and pressure on the supply chain.
According to the RBI report, despite these uncertainties, India remains one of the fastest growing large economies in the world and has managed to maintain the pace of economic activity till June. Industrial and service sector indicators remained strong.
Inflation can be controlled
In the article written on the state of the economy, it has also been said that the distribution of south-west monsoon in the agricultural sector is not uniform. However, due to satisfactory food grain stocks, its impact on food inflation can be controlled to a great extent. It said that the good growth in exports and imports in the first quarter of 2026-27 shows that the pace of foreign trade continued. The implementation of the India-UK Comprehensive Economic and Trade Agreement (CETA) and progress in other bilateral trade agreements are expected to further strengthen the country’s economic activities.
Investment of 1 billion dollars till July 20
According to the RBI report, risk indicators related to India’s external sector remain strong. The improvement in foreign investment in recent months indicates increasing confidence of global investors towards the Indian economy. Foreign portfolio investors (FPIs) made net investments last month. The reason for this is policy support for the bond market and reduction in tension at the global level. FPIs invested a total of $ 3.1 billion in the equity and bond markets in July (till July 20). Foreign direct investment (FDI) increased on both gross and net basis during April-May 2026. During this period, about 74 percent of the total equity investment was received from Japan, Singapore and Mauritius. Financial services, manufacturing, retail and wholesale trade and computer services were the sectors that attracted the most investment. About 80 percent of the total investment came from these. About 74 percent of the foreign investment of Indian companies went to America, Cayman Islands and Netherlands.
Increased share of these sectors
In this, the share of financial, insurance and professional services and manufacturing sectors was more than 85 percent. Regarding the price situation, it said that consumer price index (CPI) based retail inflation rose to an 18-month high of 4.4 percent in June 2026, whereas it was 3.9 percent in May. For the first time after January 2025, it has reached above the RBI target of four percent. The rise in prices of food and beverages and fuel was the main reason for the rise in inflation, while core inflation remained almost stable. RBI, however, clarified that the views expressed in the article published in the Bulletin are the personal views of the authors and should not be considered as the official view of the Reserve Bank of India.
