RBI Governor Sees Multiple Factors Boosting Consumer Spending in 2025

The Reserve Bank of India Governor highlighted multiple positive factors that are expected to drive consumer spending growth. The convergence of improving employment conditions, recent tax relief measures, moderating inflation at 4.2% for FY26, and robust agricultural activity creates a favorable environment for consumption revival. This optimistic outlook comes as the job market shows steady growth with a 4% increase in white-collar hiring, while rural demand continues to strengthen despite subdued urban consumption. The combined effect of these factors is expected to stimulate household spending and economic growth.

Source: Reserve Bank of India