Country The slowdown in economic activity in the second quarter is now a thing of the past. Demand is gaining momentum due to private consumption during the holiday season and the medium-term outlook remains strong. The Reserve Bank of India (RBI) said these things in its bulletin published on Wednesday. A ‘State of the Economy’ article published in the November newsletter also said global economic activity remains strong through the fourth quarter of 2024 amid challenges and rising protectionism.
Once again the macroeconomic foundations are being established
The bulletin said: “Whatever slowdown was seen in the country in the second quarter of the financial year 2024-25, it is now behind us. This is because private consumption is driving domestic demand and spending during festivals has boosted real activity in the third quarter. The medium-term outlook remains bullish as the natural strength of macroeconomic fundamentals reasserts itself.”
Indian economy showing strength
In this article written by the team led by RBI Deputy Governor Michael Debabrata Patra, it is said that the Indian economy is showing strength. This is due to festival-related consumption and improvement in the agricultural sector. The record production estimates for the Kharif crop, coupled with better prospects for the Rabi crop, augur well for farm income and rural demand in the times to come. “On the industrial front, dynamism in manufacturing and construction is expected to remain intact,” the article said.
Strong job creation is expected with the growth rate of the services sector
The adoption of electric vehicles, favorable policies, subsidies and growing infrastructure are making India a leader in sustainable transportation. Also promote job creation in emerging clean energy sectors.” According to the authors, India’s services sector is expected to maintain growth momentum with strong job creation and high consumer and business confidence .
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