RBI Bulletin 2025: How India’s 6.5% GDP Growth Beats Global Uncertainty

Why This Matters for Exams:
This topic is critical for Prelims (Economic Development) and Mains (GS III). Exams like SSC, PSC, NID, NIFT and banking tests frequently ask about RBI policies, GDP growth, inflation, and FDI trends. Understanding India’s economic resilience helps tackle essay questions and interviews.


India’s Economic Resilience Shines in Turbulent Times
Amid global trade tensions and geopolitical crises, India’s economy stands strong, reveals the RBI’s June 2025 bulletin. Key indicators show robust momentum across agriculture, industry, and services, defying worldwide volatility.

Growth Drivers & Sectoral Highlights
Q4 FY25 GDP surged to 7.4%, up from 6.4% in Q3, driven by a construction boom and fixed investments jumping to 9.4%.
Private consumption (PFCE) and capital investment (GFCF) fueled 6.5% annual GDP growth, contributing 4% and 2.4% respectively.
Rural demand rebounded with rising two-wheeler sales, while urban demand softened due to a dip in entry-level car purchases.

RBI’s Bold Policy Moves
In June 2025, the RBI slashed the repo rate and reduced the Cash Reserve Ratio (CRR) to boost lending and stimulate growth. This:
Freed up liquidity for businesses.
Shielded the economy from global supply-chain risks.
Stabilized the rupee via strategic forex interventions.

High-Frequency Signals (May 2025)
GST collections crossed ₹2 lakh crore for the second straight month.
E-way bills, toll revenues, and digital payments hit record highs.
Inflation dropped to 2.8% – lowest since February 2019.
FDI & Global Standing
April 2025 saw FDI inflows double to $3.9 billion YoY.
India ranked 16th globally in FDI and led the Global South with $114 billion in greenfield digital investments (2020–2024).
Risks Ahead
RBI flagged global trade fragmentation as a medium-term threat, urging sustained policy support to maintain growth.


Sample Q&As for Exam Prep:
Q: What drove India’s Q4 FY25 GDP growth to 7.4%?
A: Fixed investment (especially construction), rising to 9.4% from 5.2% in Q3.
Q: How did RBI support growth in June 2025?
A: By cutting repo rates and reducing CRR to enhance liquidity and lending.
Q: Why did GST collections exceed ₹2 lakh crore in May 2025?
A: Boost from import-linked GST receipts and resilient domestic activity.
Q: What trend emerged in rural vs. urban demand in May 2025?
A: Rural demand rose (two-wheeler sales up), while urban demand dipped (entry-level car sales fell).
Q: How much FDI did India attract in April 2025?
A: $3.9 billion – double the inflows from April 2024.

How to Prepare for Entrance Exams:
Mastering current affairs like the RBI bulletin demands focused revision and practice. At myentrance.in, we simplify your prep with:
Most predicted questions curated from past trends.
Free mock tests for SSC, PSC, UPSC, and NIFT.
Daily current affairs digests with bullet-point summaries.
Pro Tip: Our “Economy Boosters” module breaks down complex topics like GDP, CRR, and FDI into 10-minute reads. Start acing your exam today!