Indian Economy Gains Strength Amid Fading Global Prospects: RBI

Mumbai, Sept 19 (KNN) India’s economy is achieving power in the middle of a weakening global prospects, said an article published in the latest RBI bulletin on Monday.

The gain is led by domestic private consumption and fixed investment with strong public sector capital expenditure.

The outlook for the global economy remains ambivalent, driven by a dichotomy in macroeconomic conditions across regions, the article on 'State of the Economy' stated.

While expectations of a 'Goldilocks' soft landing in the US are strengthening, concerns about slowdowns in China and Europe are rife, it said, and added that the impact of aggressive monetary tightening is spreading, with the services sector joining housing, bank lending and industrial production in a loss of momentum.

The article authored by a team led by RBI deputy governor Michael Debabrata Patra also noted that India's G20 Presidency and its outcomes with the ethos of 'Vasudhaiva Kutumbakam' as the vision of global progress assume significance in an environment where global economic activity is experiencing a loss of momentum with a dichotomy in macroeconomic conditions across regions.

“Amidst weakening global prospects, the Indian economy is gaining strength led by domestic drivers” private consumption; and fixed investment with strong public sector capex.

“Supply responses are improving and headline inflation has softened in August from the previous month's peak,” it said.

The central bank, however, said views expressed in the article are those of the authors and do not represent the views of the Reserve Bank of India.

The article further said India's space efforts are significant for the country's socio-economic development.  (KNN Bureau)