The Indian economy continues to show resilience, despite global uncertainties.

The Reserve Bank of India said in its monthly report released on Wednesday that the Indian economy continues to withstand global fluctuations, dealing with the impact of geopolitical tensions and trade uncertainties. The RBI had cut the key policy rate by 50 basis points last month, more than expected, and reduced the bank's reserve ratio, allowing it to focus on supporting economic growth amidst low inflation rates in the face of global turmoil. The RBI stated in the "Economic Conditions" article that economic activity in India remains resilient, benefiting from improved prospects for summer crops, strong momentum in the service sector, and a slight increase in industrial activity. The RBI stated, "High-frequency indicators suggest stable total demand." The RBI said that the easing of tensions in the Middle East and the optimism surrounding trade agreements, along with relaxed regulations on infrastructure financing, boosted sentiment in the financial markets in the second half of June; however, in the first half of July, domestic investor sentiment remained cautious due to ongoing uncertainty surrounding a potential trade agreement between India and the US, and mixed corporate earnings for the quarter ended in June.