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Global slowdown could dampen demand for Indian exports, finance ministry report says
The report also said that the country's inflation rate in 2025-26 could undershoot the Reserve Bank of India's (RBI) expectation of 3.7 percent
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Reuters - Tue, 29, Jul 2025
- 00:03 EDT
- 21
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A mobile crane carries a container at Deendayal Port in Kandla, in the western state of Gujarat, India, April 5, 2025. / REUTERS/Amit Dave
A global slowdown could further dampen demand for Indian exports and continued uncertainty on U.S. tariffs may weigh on the country's trade performance in coming quarters, India's finance ministry said in its monthly economic report.
India's goods exports fell to $35.14 billion in June, down 9 percent from May, and remained nearly flat from a year earlier. The figure was the lowest since Nov.'s $32.11 billion, according to LSEG data.
ALSO READ: India GDP growth likely accelerated in March quarter on rural demand, state spending
"Despite global headwinds marked by trade tensions, geopolitical volatility, and external uncertainties, India’s macroeconomic fundamentals have remained resilient," said the report released on July 28.
Even as the outlook for Indian economy is positive, Asia's third largest economy faces downside risks such as a global slowdown, particularly the U.S. economy shrinking 0.5% in January-March, impacting India's exports, it said.
The report also said that the country's inflation rate in 2025-26 could undershoot the Reserve Bank of India's (RBI) expectation of 3.7 percent. Retail inflation in June fell to over a six-year low of 2.1 percent.
RBI Governor Sanjay Malholtra last week said the central bank has "won the battle against inflation", but the war is ongoing as price stability remains the central goal.
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