Economic Rebound on the Horizon

MUMBAI: India stands on the brink of an economic resurgence, fueled by a revival in domestic demand and promising agricultural prospects. The Reserve Bank of India (RBI) emphasizes the urgency to stimulate demand and investment, as outlined in its latest 'state of the economy' report.

Stimulating Growth and Investment

The report, released ahead of the Budget, calls for igniting 'animal spirits' to create mass consumer demand and spur an investment boom. It highlights the quickening of high-frequency indicators of economic activity in the latter half of 2024-25, suggesting a pickup in real GDP growth.

Inflation and Green Energy

While cautioning on the volatility of food prices, the report expresses cautious optimism about the growth outlook, anticipating a revival in public capital expenditure on infrastructure. It also identifies green energy as a vibrant sector, with solar and wind power capacities projected to exceed 100GW and 50GW, respectively, by 2025, setting the stage for accelerated growth in a greener, cleaner future.