The monetary authority of India, the Reserve Bank of India (RBI) has anticipated upward trend in the household consumption expenditure in the second half of the current fiscal as inflation starts declining and rural demand likely to recover. Food inflation continues to presents downside risks,Although overall retail inflation did not breach 4% for the second consecutive month to August, the RBI pointed out in its grades of inflation was in its bulletin released on September 20 September.
The bulletin by the team that includes RBI’s Deputy Governor Michael Debabrata Patra added that other domestic factors that have supported the growth were private consumption and gross fixed investment. Also, net exports has supported the gdpgrowth during the April-June quarter. While the report pointed out difficulties in the agricultural sector it also pointed out that a robust manufacturing base and a buoyant services sector made up for this weakness.
The Monetary Policy Committee of the RBI is still focused on achieving the amount of inflation that is within 4% +/- 2%. Nonetheless, there has been a conformity with the inflation forecasts with retail inflation at 3. 6% in August this year.
RBI Governor Shaktikanta Das has forecasted real GDP growth rate for the 2024-25 at 7. 2 per cent with changes in quarterly growth rates. The new forecast incorporates fresh information on companies’ earnings, officials’ spending, and production of basic industries, most of which worsened recently.
