New Delhi, December 24: The Reserve Bank of India (RBI) reported signs of economic recovery in the third quarter (October-December) of FY2024-25, driven by strong festival demand and a resurgence in rural consumption.
In its monthly bulletin released on Tuesday, the central bank highlighted positive momentum in rural demand, aided by a brisk expansion in rabi sowing and a moderation in headline CPI inflation to 5.5% in November, primarily due to easing food prices.
ALSO READ: India’s Forex Reserves Strong Enough to Cover 11 Months of Imports, Says RBI
The RBI acknowledged the slower-than-expected GDP growth in the July-September quarter, citing:
The report also flagged concerns about the slowing nominal GDP growth rate, which could constrain fiscal spending, including capital expenditure, and affect deficit targets.
The RBI reiterated that unchecked inflation poses a significant risk to economic stability, especially in sectors like industry and exports.
“The time to act is now to tackle inflation and revive investment robustly, especially as food prices show a seasonal decline and private consumption gains momentum,” the RBI stated.
With easing inflationary pressures and improving rural consumption, the RBI remains cautiously optimistic about India’s economic outlook. However, it emphasized the need for timely policy interventions to ensure sustained momentum in investment and consumption.
December 25, 2024: Rohit Sharma is set to return to his natural role as an…
December 25, 2024: B Praak's spiritual experience at the Bhasma Aarti in the Shri Mahakaleshwar…
From late-night cravings to train journeys, biryani remains India’s most-ordered dish, while chicken rolls and…
December 25, 2024: Mitchell Starc's remarkable journey in international cricket continues to captivate fans and…
From 'Pushpa 2' to 'Teri Baaton Mein Aisa Uljha Jiya,' these blockbusters set cash registers…
December 25, 2024: Ahead of his highly anticipated debut in the fourth Test against India,…