Navigating global uncertainty, the Indian economy has been anchored by solid macroeconomic fundamentals and policy interventions to cushion downside risks, the Reserve Bank of India said in the October 2026 issue of its monthly Bulletin on Friday, adding that the domestic economy continues to demonstrate strength as evidenced by high-frequency indicators across both industry and services.

Source: IANS via NewKerala

The Bulletin said headline Consumer Price Index inflation edged up in September, driven by a broad-based increase in food, fuel and core components, and noted that the generalisation of price pressures called for a commensurate change in the monetary policy stance.

On the external side, double-digit growth in merchandise exports during the first six months of 2026-27 helped narrow the trade deficit in September. Foreign direct investment, external commercial borrowing and remittance flows strengthened in August, and strong inflows under the FCNR(B) swap window augmented reserves, the Bulletin said.

Source: NationPress (IANS)

Manufacturing, services and farms

On the supply side, manufacturing grew at a robust pace, while services activity strengthened further on the back of buoyant domestic and external demand. Kharif sowing concluded with total acreage above its normal level, despite a deficient and uneven southwest monsoon, according to the Bulletin.

The Bulletin highlighted that the International Monetary Fund raised India's growth projection for 2026-27 by 60 basis points to 7.0 per cent from its July estimate, citing stronger-than-expected momentum driven by resilient domestic demand and robust services activity. Yaani, the IMF now expects the Indian economy to grow by about 7 rupees for every 100 rupees of output compared with last year.

Source: IANS via HiIndia