RBI Predicts Continued Strong Growth For India's Economy In April-June

ENA Economy 2024-06-20 13:53:36 New Delhi, Jun 20 (KNN) According to Reserve Bank of India officials, India's economic growth trajectory is expected to maintain the robust momentum witnessed in the January-March quarter during the current April-June period. This optimism is underpinned by anticipated growth in private consumption along with an accelerating pace in the manufacturing and services sectors. The domestic economy expanded at an impressive 7.8 per cent rate in the fourth quarter of the 2023-24 fiscal year, outperforming expectations. For the full year, growth stood at a robust 8.2 per cent. If the central bank's projections outlined in its June bulletin materialise, the growth prospects for the June quarter could surpass the 7.3 per cent forecast made by the RBI's Monetary Policy Committee on June 7. The State of the Economy article, authored by RBI officials including Deputy Governor Michael Patra, highlighted India's shifting growth trajectory since the COVID-19 pandemic. The country's average growth rate is seen ascending from 7 per cent during 2003-19 to 8 per cent or higher between 2021-24, driven by domestic economic factors. Private consumption is regaining its role as the primary demand driver, with the article noting a broadening base encompassing rural consumers. The fast-moving consumer goods (FMCG) sector is gearing up for a strong rebound, buoyed by expectations of increased public welfare spending. While declining footfall in physical stores is a concern, e-commerce platforms are compensating for this trend, particularly during the ongoing heatwave conditions. On the investment front, the article acknowledged steady growth, albeit with some moderation due to transitory uncertainties weighing on investment decisions. However, it emphasised the need for a robust revival in private investment to become the most crucial growth driver in the coming years, especially as public finances undergo consolidation. The article also highlighted the Monetary Policy Committee's assessment, which points to sustained momentum in manufacturing and services based on high-frequency activity indicators. Furthermore, the prospects for agriculture are brightening, with expectations of an above-normal Southwest monsoon and its early arrival, which should spur rural demand and support private consumption. Overall, the RBI's assessment paints an optimistic picture of India's economic trajectory, underscoring the resilience of domestic demand drivers and anticipating a continued growth momentum across key sectors of the economy. (KNN Bureau) 38277 https://knnindia.co.in/news/newsdetails/economy/rbi-predicts-continued-strong-growth-for-indias-economy-in-april-june 2024-06-20 13:53:36 knnindia.co.in RBI Predicts Continued Strong Growth For India's Economy In April-June