India's Economic Performance Review for June 2022

India witnessed an overall upturn in economic activities during June 2022 backed by an uptick in services activity and solid industrial growth, though universal inflationary pressures continue to result in demand-supply disparities. In tandem with other global central banks, the Reserve Bank of India (RBI) has raised repo interest rate by 90 basis points since April 2022 and it pledges to keep intervening until the inflation rate comes below the target ceiling of 6%. The predicted “normal” monsoon this year is expected to accelerate agricultural growth. India’s policymakers are currently busy resolving the problems of core inflation and rising current account deficit. Overall, the business sentiment seems positive though it remains uncertain due to continuing disruptions from the Russia-Ukraine conflict.