RBI bulletin says India resilient amid global headwinds

The Reserve Bank of India's August 2026 bulletin said the domestic economy has shown notable resilience against global headwinds, driven by buoyant demand, rising manufacturing and services activity, and a rebound in foreign capital inflows, according to the 'State of the Economy' article. The bulletin noted that the southwest monsoon recovered in July, bringing kharif sowing closer to normal acreage, and that headline CPI inflation edged up to 4.45% in July from 4.38% in June, mainly due to food and beverage prices, while core inflation stayed stable.

The article, however, cautioned that the global outlook remains clouded by geopolitical frictions in West Asia and fresh US tariffs. Livemint reported that RBI identified uneven monsoon, El Nino, and supply chain disruptions as key domestic risks. The bulletin is published on the RBI website and carries a disclaimer that the views are those of the authors and not the central bank.