Priyanka Tiwari
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Suspense crime, Digital Desk : The Reserve Bank of India (RBI), in its recently released Annual Report for 2023-24, has projected a robust Gross Domestic Product (GDP) growth rate of 7% for the current fiscal year 2024-25. The central bank also anticipates that inflation will remain largely under control, trending downwards.
According to the RBI's assessment, the Indian economy demonstrated resilience and maintained strong momentum throughout the fiscal year 2023-24, with growth primarily driven by solid domestic demand. The report highlights that fixed investment saw a significant uptick, while private consumption also showed signs of improvement, particularly in the latter half of the year.
Looking ahead to FY25, the RBI expects the growth trajectory to continue, supported by an anticipated normal monsoon, which should bolster agricultural activity and rural demand. The central bank also noted that the external sector is expected to remain manageable, contributing positively to overall economic stability.
On the inflation front, the RBI expressed confidence that price pressures are likely to moderate further. The report suggests that while certain food price volatilities might persist, core inflation has been easing, and headline inflation is projected to move closer to the RBI's target range. The central bank remains committed to its inflation-targeting mandate to ensure macroeconomic stability and sustainable growth.
The Annual Report also touched upon the health of the banking sector, noting improvements in asset quality and capital adequacy ratios, indicating a more robust financial system. Overall, the RBI's outlook for the Indian economy in FY25 is cautiously optimistic, banking on continued domestic strength and moderating inflationary pressures.
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