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Domestic economy demonstrates notable resilience to ongoing global headwinds: RBI Bulletin
Aug-26-2026

The ‘State of the Economy’ article featured in the Reserve Bank of India’s (RBI) August 2026 Bulletin observed a divergence between external and domestic economic environment, stating that the global economy is confronting a fragile geopolitical environment and continuing trade-related uncertainties. Nevertheless, the domestic economy has demonstrated notable resilience to the ongoing global headwinds, characterised by buoyant domestic demand, and rising manufacturing and services activity.

According to the article, the south-west monsoon picked up in July after recording a deficit in June. While headline CPI inflation rose fractionally, reflecting food inflation; core inflation remained stable. Liquidity conditions eased, supporting credit growth and ongoing investment activity. Foreign capital inflows rebounded, reinforcing the external sector.

Meanwhile, the August 2026 issue of monthly Bulletin released by the Reserve Bank of India, includes bi-monthly monetary policy statement (August 03-05, 2026), six speeches, one article and current statistics.


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