India’s economic performance remained resilient despite global uncertainty arising from the ongoing conflict in West Asia. According to the Finance Ministry’s Monthly Economic Review (MER) for May 2026, the foreign exchange reserves remained at comfortable levels.
It said the global environment has become materially more challenging with elevated crude prices, tightening financial conditions, and weakening growth momentum across major economies, posing as headwinds for the Indian economy.
The Index of Core Industries declined marginally by 0.4 per cent in March this year, even though infrastructure and manufacturing activities continue to maintain underlying momentum. The inflationary pressures, as measured by retail inflation, remain contained at 3.4 per cent in March this year. The liquidity in the system remains in surplus, and the bank credit growth remains steady and growing by over 17 per cent year-on-year.
