Robust Domestic Engines Supporting India's Growth Outlook: RBI Bulletin

Mumbai: India's growth outlook is supported by robust domestic engines and private investment showing some encouraging signs despite geopolitical tensions, Reserve Bank's October Bulletin said on Monday.

global economy remained resilient in first half of 2024, with declining inflation supporting household spending.

Stable growth momentum amid monetary policy easing is becoming prevailing me across most economies, according to an article on 'State of Economy' published in Bulletin.

"In spite of geopolitical tensions, India’s growth outlook is supported by robust domestic engines," it said.

It also noted that some high-frequency indicators have, however, shown a slackening of momentum in second quarter of 2024-25, partly attributable to idiosyncratic factors like unusually heavy rains in August and September.

"Looking ahe, private investment is showing some encouraging signs in terms of le indicators while consumption spending is shaping up for a festival season revival," said article authored by a team led by RBI deputy governor Michael Debabrata Patra.

After remaining below target for two consecutive months, inflation surged in September, as an verse statistical base effect was compounded by a resurgence in food price momentum.

central bank said views expressed in Bulletin article are of authors and do not represent views of Reserve Bank of India.