The Reserve Bank of India's (RBI) monthly bulletin released on May said that the global growth outlook remains fragile despite the US has paused tariffs, which provided some relief.
The global growth continues to face headwinds with persistent trade frictions, heightened policy uncertainty, and weak consumer sentiment weighing on the outlook.
Despite this, the Indian economy is exhibiting resilience even after high trade and tariff-related uncertainty, bulletin said.
"Various high frequency indicators of industrial and services sectors sustained their momentum in April," bulletin added.
On April 9, US President Donald Trump announced a 90-day 'pause' on reciprocal tariffs for all countries except China. This is set to act as a major relief to the markets, which earlier crashed after the tariff announcement on April 2.
Trump made his 'Liberation Day' announcement and unveiled 26 percent tariff on India on April 2.
The optimism on domestic growth, along with the news of a temporary freeze on tariff measures by the US, led to a significant recovery of financial markets by mid-April, bulletin said.
The domestic equity market, which declined initially in response to the tariff announcements by the US, gained momentum in the second half of April in the wake of robust corporate earnings reports for Q4:2024-25 by some banking and financial sector companies, bulletin added.
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