Indian Economy: ‘Economy gaining steam even as global growth slows’

The Indian economic system is gaining power led by non-public consumption and public sector capital expenditure — whilst world progress is dropping momentum, RBI’s state of the economic system report launched on Monday stated.
“During the rest of the current decade as well as the next, global growth is projected to be lower than in the previous two decades, especially among advanced economies. Emerging economies, on the other hand, are likely to become a key engine of the global economy,” the report stated. The report isn’t the official view of the central financial institution however is authored by RBI employees, together with deputy governor Michael Patra.
“The Indian economy remains an outlier amidst darkening global prospects. Supply chain pressures in India remain below historical average levels despite a pickup since May 2023. Our economic activity index now casts GDP growth for Q2 FY24 at 6.6%,” the report stated.

RBI report

It additionally stated that non-public last consumption expenditure, which is the mainstay of combination demand with a share of 57.3% in GDP, grew 6%. It added that the federal government’s infrastructure thrust and ‘exuberant real estate activity’ has resulted in gross fastened capital formation rising by 8%, sustaining its share at 34.7% of GDP.
“Acceleration in investment activity is also corroborated by robust growth in steel consumption, cement production, capital goods production and imports,” the report stated.
The report has cited rising e-way invoice volumes, retailers stockpiling items forward of the festive season, and an increase in toll assortment used as a proxy for financial exercise.

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