Structural Demand & Healthy Balance Sheets To Drive Economic Growth: RBI

New Delhi, Mar 20 (KNN) In its latest monthly bulletin, the Reserve Bank of India (RBI) projects that robust structural demand and healthier corporate and bank balance sheets will serve as primary catalysts for sustained economic growth.

The bulletin highlights India's real GDP reaching a six-quarter peak in the third quarter of FY24, attributed to robust momentum, solid indirect tax revenues, and reduced subsidies.

Despite the festive season coinciding with the third quarter, private final consumption expenditure remained subdued, according to the RBI's ‘State of the Economy’ report authored by officials, including MD Patra.

However, the outlook for premium consumer businesses remains strong, indicating a notable shift in per capita income.

RBI officials emphasised the burgeoning opportunities in small towns, fuelling growth across various lifestyle segments.

Companies venturing into these markets early are reaping significant benefits, indicating a promising trajectory.

They stated, “Small town opportunities are leading to growth of business across lifestyle segments, with companies that entered these markets enjoying the fruits of being first movers.”

High-frequency indicators further bolster optimism, pointing to sustained domestic demand vigour in February 2024, as evidenced by e-way bills, toll collections, and growth in automobile and retail sales.

(KNN Bureau)