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RBI Bulletin: Post Dismal Q2, Indian Economy Showing Signs Of Recovery In H2 FY25

  • According to the Reserve Bank of India's December bulletin, the Indian economy is expected to recover in the second half of FY25, driven by private consumption, rural demand, and strong foodgrains production.
  • Resilient private consumption demand, record-level foodgrains production, and rural demand gaining momentum are likely to drive India's growth trajectory in the second half of the current financial year, according to the Reserve Bank of India's December bulletin.
  • High-frequency indicators for the third quarter of 2024-25 indicate that the Indian economy is recovering from the slowdown in momentum witnessed in the second quarter, driven by strong festival activity and a sustained upswing in rural demand.
  • Challenges persist in the form of ongoing geopolitical tensions, concerns over growing protectionism, and a large public debt overhang, which have adverse implications for emerging market economies.

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