MENAFN– KNN India)
New Delhi, Oct 22 (KNN) The Reserve Bank of India (RBI) projects India’s GDP growth at 6.8% for Q2 2024-25, slightly up from 6.7% in the previous quarter, based on its October Bulletin.
The Indian economy shows resilience but has slowed down moderately this quarter, influenced by seasonal factors like heavy rainfall and the Pitru Paksha observance.
Key economic indicators such as GST collections, auto sales, bank credit growth, exports, and the manufacturing index are showing moderation. However, consumer sentiment and industry expectations are improving, providing an optimistic outlook.
The festive season is expected to increase spending, and private investment shows positive signs. The RBI also notes encouraging manufacturing capacity, suggesting possible economic growth ahead.
Despite this, market concerns linger due to high valuations in Indian stocks and rising geopolitical tensions in the Middle East, leading to a pullback in major indices as investors await Q2FY25 corporate earnings.
Inflation is now a major issue, rising to 5.5% in September, driven mainly by food prices. While there’s some easing in cereal prices, edible oils, onions, and tomatoes are becoming more expensive.
Ongoing geopolitical tensions may further affect import prices, particularly for commodities like crude oil and metals. This suggests that global monetary policy must navigate between supporting growth and controlling inflation amid recent price shocks.
(KNN Bureau)
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