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India’s growth outlook supported by domestic engines amid geopolitical tensions: RBI bulletin

22 Oct 2024 Evaluate

The Reserve Bank of India's article on 'State of the Economy' published in the October Bulletin has said India's growth outlook is supported by robust domestic engines and private investment showing some encouraging signs despite geopolitical tensions. It said the global economy remained resilient in the first half of 2024, with declining inflation supporting household spending.

It stated stable growth momentum amid monetary policy easing is becoming the prevailing theme across most economies. It said 'In spite of geopolitical tensions, India's growth outlook is supported by robust domestic engines.'

It also noted that some high-frequency indicators have, however, shown a slackening of momentum in the second quarter of 2024-25, partly attributable to idiosyncratic factors like unusually heavy rains in August and September. The article authored by a team led by RBI deputy governor Michael Debabrata Patra said ‘Looking ahead, private investment is showing some encouraging signs in terms of lead indicators while consumption spending is shaping up for a festival season revival.’


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