Rural demand likely recovered

• India's economy shows resilient performance amid global uncertainty.

• Growth estimate for FY 2024–25 remains at 6.5%, supported by a strong Q4 pickup.

• India reported the highest PMI expansion among surveyed countries in May, especially in new export orders.

• Manufacturing:

• Capacity utilisation remained above the long-term average.

• Continued robust activity, contributing to overall growth.

• Broad-based increase in production across major crops.

• Boosted rural demand, indicating wider economic participation.

• Headline inflation stayed below RBI’s target for the fourth consecutive month (up to May).

• Food Prices (till June 20):

• Pulses: Moderated

• Cereals: Marginal increase

• Stable in present, with optimism about future, per surveys.

• Rising trade barriers and geopolitical tensions pose risks to global growth.

• Continued uncertainty in trade policy could impact external demand and investment outlook globally.