Mumbai – The Indian economy has so far exhibited resilience, driven by a focus on strong and durable macroeconomic fundamentals amidst broader global uncertainty and weak external demand, a Reserve Bank of India (RBI) bulletin said on Monday.

Global uncertainty has edged up, said an article on 'State of the Economy' published in the RBI's October Bulletin.

In the US, both trade and economic policy uncertainty increased in September. Global growth, however, has broadly held up. Investor sentiments dampened in October, on renewed US-China trade tensions and prolonged US government shutdown, after a phase of buoyancy.

The Indian economy displayed resilience amidst broader global uncertainty and weak external demand. High-frequency indicators point to a revival in urban demand and robust rural demand.

“While the Indian economy is not immune to global headwinds, it has so far exhibited resilience, driven by a focus on strong and durable macroeconomic fundamentals, including low inflation, robust balance sheets of banks and corporates, adequate foreign exchange reserves and a credible monetary and fiscal framework,” the article said.

The RBI said the views expressed in the bulletin article are of the authors and do not represent the views of the Reserve Bank of India.

Headline consumer price index (CPI) inflation moderated sharply in September, marking its lowest reading since June 2017, as per the bulletin.

The article also noted that high-frequency food price data for October so far (up to 17th) point towards a pick-up in cereal prices.

Among pulses, prices moderated for gram dal, tur/arhar dal and moong dal.

Within edible oils, prices firmed up for mustard oil, sunflower oil and palm oil while groundnut oil prices eased. Key vegetable (tomato, onion, and potato) prices softened, with the decline being most pronounced for tomatoes.

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