RBI Bulletin Highlights Economic Resilience and Growth Outlook for FY25

The Reserve Bank of India (RBI) stated in its October Bulletin that the Indian economy continues to exhibit resilience amid global uncertainty and is poised for high growth. Indicators of capacity utilisation and domestic demand signalled improvement, reinforcing confidence in economic fundamentals.

Domestic Demand and Capacity Utilisation

The RBI noted that lead indicators of the manufacturing and services sectors showed robust expansion. Urban demand is reviving, while rural demand remains strong, supported by improving consumption trends.

Inflation Trends and Monetary Policy

Headline consumer price index (CPI) inflation moderated sharply in September, marking its lowest reading since June 2017. RBI Governor Sanjay Malhotra said the easing of inflation provides greater flexibility for monetary policy to support growth without compromising price stability.

Global Growth Projections for India

The International Monetary Fund (IMF) revised India’s GDP growth forecast for 2025 upward by 20 basis points to 6.6 per cent. Similarly, the Organisation for Economic Co-operation and Development (OECD) raised its projection by 40 basis points to 6.7 per cent from 6.3 per cent, citing strong domestic demand momentum.

Outlook for FY25

The RBI bulletin emphasised that India’s economic trajectory remains positive, supported by robust demand and stable inflation. With global agencies upgrading growth estimates, the outlook for FY25 signals sustained momentum despite external challenges.

Read More: RBI Adds More Gold to Forex Reserves.

Conclusion

India’s economy continues to demonstrate resilience, with improving demand indicators and historically low inflation. Upward revisions by IMF and OECD reinforce confidence in India’s growth prospects for FY25. Policymakers are expected to maintain a supportive stance while ensuring price stability.

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