(MENAFN– KNN India)
New Delhi, Oct 22 (KNN) The Reserve Bank of India (RBI) predicts a GDP growth of 6.8% for Q2 2024-25, a slight rise from 6.7% the previous quarter, as stated in the RBI’s October Bulletin.
Although the Indian economy remains resilient, it has slowed down slightly this quarter, partly due to heavy rains in August and September and the observance of Pitru Paksha.
Key indicators like GST collections, car sales, bank credit, exports, and manufacturing have shown a slowdown. Despite this, consumer sentiment is improving, and the festival season is expected to boost spending. Private investments are also showing positive signs.
The RBI notes encouraging trends in manufacturing capacity, indicating potential economic growth ahead. However, Indian stock markets are cautious due to high valuations and geopolitical tensions in the Middle East, leading to a pullback in October.
Inflation rose to 5.5% in September after staying below the RBI’s 4% target in the previous two months, mainly driven by food prices. While there are signs of decreasing prices for some cereals and pulses, edible oil prices are increasing, and costs for onions and tomatoes have surged.
Geopolitical tensions in the Middle East could affect commodity prices, particularly crude oil and metals, necessitating careful global monetary policy decisions to balance growth and inflation risks.
(KNN Bureau)
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