New Delhi. The Reserve Bank of India has claimed in its bulletin released on Monday that whatever happens in the global economy, the pace of the Indian economy will not slow down at all. In a bulletin titled ‘State of the Economy’, RBI has said that fiscal and monetary measures will pave the way for faster growth led by higher private investment. This will overall strengthen the economic front in the long run amid global uncertainties. It has been said in the bulletin that gold is being imported heavily in the country, due to which the trade deficit has increased significantly in October.
RBI has clearly said that despite global challenges, signs of further growth are visible in the Indian economy. Besides, concern has also been expressed about the increasing enthusiasm in the global stock markets. Questions are being raised about its stability and impact on financial stability. According to the bulletin, high-frequency indicators (PMI, GST collections, electricity consumption, e-way bills etc.) available for October indicate strength in both manufacturing and services activities. This has been supported by festival demand and GST reforms.
Relief from controlling inflation
It is written in the bulletin that retail inflation has reached a historically low level and remains well below the target. Also, financial conditions remain favorable and the flow of financial resources also remains good. Amid uncertainties over global trade policy and external challenges, India’s economy is becoming ‘more robust to external shocks over time’. This is due to strong service exports, money inflows and low crude oil prices.
GDP to current account ratio
It has been said in the RBI article that the increasing share of renewable energy in India’s energy sector is further increasing its strength. The ratio of current account deficit to GDP remained modest in the first quarter of the financial year 2025-26. The fiscal, monetary and regulatory measures taken so far this year should pave the way for a positive cycle of higher private investment, productivity and growth. This will strengthen the economic front in the long run. However, concerns remain regarding the increasing enthusiasm in global stock markets. Due to this, questions are being raised about its sustainability and its impact on financial stability. However, the central bank has clarified that the views expressed in the article ‘State of the Economy’ published in the bulletin are those of the authors and have nothing to do with the views of the Reserve Bank of India.
Gold is being imported heavily
In the same bulletin of RBI, it has been said that the country’s trade deficit has increased to 41.7 billion dollars in October, which is mainly visible due to the increase in the import of gold and silver. The report says that this loss is the highest in any month so far. This reflects the surge in imports during the festive season, weakness in global demand and a massive increase in non-oil, non-gold imports. India’s merchandise exports declined again in October after three months of consecutive growth.
Demand for jewelery increased during festivals
The report said that the sharp increase in imports of gold and silver was a major reason for the record loss. October was the peak time of festivals, due to which the demand for jewelery increased. Apart from this, purchases of digital gold have also increased during festivals and this category was included in the top UPI merchant transactions. India’s import bill increased further due to high bullion prices globally. According to the charts shown in the bulletin, during that time gold prices had reached near historical highs.
Import of these goods also increased
The bulletin said that apart from precious metals, an increase in imports of electronic goods, machinery, chemicals and consumer goods was also seen in October. RBI attributed this to strength in domestic consumption and increase in stocks by traders for festivals. However, oil imports remained stable as global crude oil prices remained weak, limiting energy-related pressure on the deficit. RBI said that India’s external position remains largely stable, which is contributed by strong service exports and adequate foreign exchange reserves.
