Close Menu
ForelinesForelines
  • News
    • World
      • Ukraine-Russia War
      • Israel-Hamas War
      • Africa
      • Americas
      • Asia
      • Middle East
      • Australia
      • Europe
      • India
      • China
      • United Kingdom
      • United States
      • US-Election
    • Politics
    • Global conflict & war
    • Terrorism & Security
    • Economy
    • Climate & Environment
    • Bussiness
    • Defense
    • Science
    • Technology
    • Sports
    • Legal
    • others
  • Art
  • Lifestyle
  • Opinion
  • Research
  • Forelines In-depth
  • Pictures
  • videos
What's Hot

“Leaked bits and pieces of an intel assessment to push a false narrative,” says White House Press Secretary

June 26, 2025

UN Secretary-General Guterres warns 80-year-old founding charter ‘not an a la carte menu’

June 26, 2025

European Union leaders urge for Gaza ceasefire, talk about the critical Israel report

June 26, 2025
Facebook X (Twitter) Instagram
ForelinesForelines
Subscribe
  • News
    • World
      • Ukraine-Russia War
      • Israel-Hamas War
      • Africa
      • Americas
      • Asia
      • Middle East
      • Australia
      • Europe
      • India
      • China
      • United Kingdom
      • United States
      • US-Election
    • Politics
    • Global conflict & war
    • Terrorism & Security
    • Economy
    • Climate & Environment
    • Bussiness
    • Defense
    • Science
    • Technology
    • Sports
    • Legal
    • others
  • Art
  • Lifestyle
  • Opinion
  • Research
  • Forelines In-depth
  • Pictures
  • videos
ForelinesForelines
Home»Economy»India’s economy set for rebound but food inflation needs monitoring, cenbank says
Economy

India’s economy set for rebound but food inflation needs monitoring, cenbank says

Disha MishraBy Disha MishraJanuary 17, 2025Updated:January 17, 20252 Mins Read
WhatsApp Facebook Twitter Telegram Email
Follow Us
Facebook X (Twitter) Instagram YouTube
A woman selects tomatoes from a vegetable vendor, at a wholesale market in Navi Mumbai, India August 4, 2023. (REUTERS/Francis Mascarenhas/File Photo)
Share
WhatsApp Facebook Telegram Twitter Email

India‘s economic growth is poised to rebound as domestic demand regains strength, but “stickiness” in food inflation warrants careful monitoring, the central bank said in its monthly bulletin released on Friday.

In India, there is a “conducive quickening” of high-frequency economic activity indicators in the second half of 2024-25, signalling implicit pick up in real gross domestic product growth for this period, the Reserve Bank of India said in an article titled ‘State of the Economy’ in the bulletin.

Rural demand continues to gain momentum, reflecting resilience in consumption, supported by brighter agricultural prospects, the RBI said.

A revival in public capex on infrastructure is also likely to stimulate growth in key sectors, it added.

The RBI’s now-cast model forecasts India’s economy to grow at 6.2% in the October-December quarter, per the bulletin.

India’s economy grew by 5.4% in the July-September quarter from a year earlier, compared with 6.7% growth in the previous three months.

Growth is projected to slow to a four-year low of 6.4% in the financial year ending March 31.

Although headline inflation eased for the second consecutive month in December, sticky food inflation warrants careful monitoring of second-order effects, the RBI said in the bulletin.

India’s annual retail inflation (INCPIY=ECI), eased to a four-month low of 5.22% in December, lower than economists’ estimate of 5.3%.

The slowing inflation is likely to pressure the Monetary Policy Committee to cut rates in February, but a depreciating rupee has complicated the rate-setting panel’s woes, some analysts said.

The volatility in portfolio flows due to global risk-on-risk-off sentiments is the source of exchange rate volatility rather than differentials in inflation or interest rates, the RBI said in a separate article in the bulletin.

“Throwing sand in the wheels to dampen the exchange rate volatility is more effective than attempts to influence the level of the exchange through large interventions,” the RBI said. (Reuters)

economy India Inflation RBI
Share. WhatsApp Facebook Telegram Twitter Email LinkedIn

Related Posts

Indian Prime Minister Narendra Modi chairs 48th PRAGATI meeting

June 25, 2025

India’s PM Modi welcomes the successful launch of Space Mission carrying astronauts from the US, India, Hungary, and Poland

June 25, 2025

India’s PM Modi pays tribute to defenders of Democracy on Samvidhan Hatya Diwas

June 25, 2025

Sixteenth meeting of bilateral consultative group on security issues between India and Nepal

June 24, 2025
Add A Comment

Leave A Reply Cancel Reply

Latest Post

“Leaked bits and pieces of an intel assessment to push a false narrative,” says White House Press Secretary

June 26, 2025

UN Secretary-General Guterres warns 80-year-old founding charter ‘not an a la carte menu’

June 26, 2025

European Union leaders urge for Gaza ceasefire, talk about the critical Israel report

June 26, 2025

Tenth Strategic Dialogue and Thirteenth Political Consultation between India and Vietnam

June 26, 2025
© 2025 copyright@ Forelines.
  • Home

Type above and press Enter to search. Press Esc to cancel.