India's Economic Rebound: RBI Predicts Strong Growth in H2 FY25

The Reserve Bank of India's latest bulletin indicates a promising economic outlook for India in the second half of fiscal year 2024-25. High-frequency indicators suggest a robust recovery from the slowdown experienced in Q2, driven by strong festival activity and sustained rural demand. The RBI anticipates a rebound in growth, supported by resilient domestic consumption, brighter agricultural prospects, and continued government investment in infrastructure. Private final consumption emerges as a bright spot, propelled by e-commerce and quick commerce. However, the central bank warns that rising input costs and global headwinds could pose risks to this positive trajectory.

 

Source: RBI Bulletin, January 2025