ECONOMY
Economy on the revival, boosted by higher demand, pick-up in infrastructure capex
- IBJ Bureau
- Jan 18, 2025
The country’s economic growth is expected to rebound driven by higher domestic demand and revival in public capital expenditure (capex) on infrastructure, a Reserve Bank of India’s (RBI) article has said. However, elevated food inflation requires close monitoring, the State of the Economy article published in the RBI’s January bulletin has said.
“India’s economic growth is poised to rebound as domestic demand regains strength. Rural demand continues to gain momentum, reflecting resilience in consumption, supported by brighter agricultural prospects. A revival in public capex on infrastructure is likely to stimulate growth in key sectors,” the article has added. It notes that rising input cost pressures in the manufacturing sector, coupled with weather-related exigencies and global headwinds could, however, pose risks to this outlook.
In India, it has said that there is a “conducive quickening” of high-frequency indicators of economic activity in the second half of 2024-25, bearing out the implicit pick-up in real GDP growth for this period in the annual first advance estimates of the National Statistics Office (NSO).
According to the first advance estimate of NSO, the country’s real Gross Domestic Product (GDP) is seen growing at a four-year low of 6.4 per cent in the current financial year. The article has been prepared by the RBI’s former Deputy Governor Michael Patra and other central bank officials.
Report By
View Reporter News