RBI: Rural demand continues to rise supported by better agricultural prospects
New Delhi| Due to strengthening of domestic demand, the country’s economic growth is moving towards increasing again. However, food inflation needs to be monitored. The economic outlook for 2025 varies from country to country, the RBI said in the bulletin. The pace of the American economy is slow. Minor improvement is taking place in Europe and Japan.
According to the bulletin, in the second half of 2024-25, there has been an acceleration of high indicators containing the economic activity of the country. This acceleration has also been reflected in the growth of real GDP in the first annual advance estimates of the National Statistical Office. Inflation has declined for the second consecutive month in December.
If seen, rural demand continues to accelerate which is supported by better agricultural prospects. The revival in public capital spending on infrastructure is likely to boost growth in key sectors. RBI’s views are not in the article. These are the authors’ own views.
Headline inflation eased for the second consecutive month in December, driven by a surplus of fruits and vegetables in winter and lower prices. An article written by Reserve Bank of India (RBI) Deputy Governor Patra said that this time is suitable to boost consumer demand and accelerate investment. Also in this article, it was said that there are signs of a pick-up in economic activity in the second half of 2024-25, which is also evident from the estimates of the Indian National Statistical Office (NSO). The article reported that corporate India is expecting better revenue and income growth in the third quarter against the first half of 2024-25.
Moreover, the net profit of Nifty 50 companies is likely to grow fastest in three quarters. Good results are expected especially from banking, finance and insurance companies. In addition, unlisted companies can also outpace their listed companies with faster revenue growth.
