Indian Economy News

GDP growth robust on back of healthy balance sheets of banks, says RBI

The Reserve Bank of India has noted that India's GDP growth remains robust, driven by strong investment demand supported by healthy bank and corporate balance sheets. This growth is further bolstered by the government's focus on capital expenditure and the implementation of prudent monetary, regulatory, and fiscal policies. Despite facing headwinds from a challenging global economic landscape, the Indian economy is well-positioned to accelerate its growth trajectory over the next decade, maintaining stability both macroeconomically and financially. The easing of headline inflation towards the target is expected to stimulate consumption demand, particularly in rural areas, contributing to sustained economic expansion.

Moreover, the report emphasizes the resilience of India's external sector, reinforced by ample foreign exchange reserves, which serve as a buffer against global economic shocks. However, the outlook is not without risks, as geopolitical tensions, economic fragmentation, financial market volatility, commodity price fluctuations, and climate-related events pose potential threats to growth and inflation. Additionally, the rapid adoption of AI/ML technologies and recurrent climate shocks present ongoing challenges that require careful navigation. The annual report, a statutory requirement of the RBI's central board of directors, offers comprehensive insights into the institution's operations and performance during the FY24.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.