The Reserve Bank of India indicates the domestic economy remains generally resilient for the current quarter, though some early signs of softening have appeared. MPC minutes noted that consumer spending around festivals and recent GST adjustments helped bolster demand. Rural consumption stays strong while urban recovery progresses, with private investment supported by high capacity use and growing bank credit.
Agricultural conditions are favorable due to good crop output and reservoir levels, aiding the supply side. Manufacturing continues gaining momentum alongside steady services activity. The central bank projects GDP growth at 7.3 percent for the fiscal year, citing supportive factors like benign inflation and healthy corporate finances. External trade presents a mixed picture, with strong services exports but challenges for merchandise shipments.
Economic activity in the first half of the financial year benefited from tax policy changes, lower oil prices, and government capital expenditure. The next policy committee meeting is scheduled for early February.
Agricultural conditions are favorable due to good crop output and reservoir levels, aiding the supply side. Manufacturing continues gaining momentum alongside steady services activity. The central bank projects GDP growth at 7.3 percent for the fiscal year, citing supportive factors like benign inflation and healthy corporate finances. External trade presents a mixed picture, with strong services exports but challenges for merchandise shipments.
Economic activity in the first half of the financial year benefited from tax policy changes, lower oil prices, and government capital expenditure. The next policy committee meeting is scheduled for early February.
