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New Delhi:
The economy around the world is going through challenges at this time. Trade tension, uncertainty in policies and weak consumer sentiments have slowed down global growth. But even in this environment, the Indian economy is showing strength. RBI has said this in its latest bulletin.
Speed in the industry and service sector
According to the RBI, in April, high-facility data related to the industry and service sector remained positive. This means that there is still good growth in these sectors.
Monsoon and crop trends are supporting agricultural sector
This year Rabi has a good crop and more land is being cultivated for summer crops. Also, the monsoon estimate for 2025 is also said to be good. All these positive signals are considered good for the agricultural sector of India.
Relief in inflation
According to the bulletin, the headline CPI inflation is continuously decreasing since July 2019. The biggest reason for this is to reduce the prices of food and drink. In April 2024, the rate of inflation for agriculture and rural laborers decreased considerably as compared to earlier. CPI-AL declined to 3.48% for agricultural laborers and CPI-RL for rural laborers to 3.53%, which was close to 7% in the same month last year. The poor and rural families benefited from this.
Recovery after fluctuations in financial markets
In April, there was a slight ups and downs in India’s financial markets, but from the third week of May, there was improvement. The markets fell for a short time due to the US tariff announcements, but the market again came to life after the brilliant quarterly reports of some banks and financial companies.
Decline in cash and impact of digital trend
The circulation of notes between 2014 and 2024 was much lower than before the growth rate of NIC. Between 1994 and 2004, the growth of NIC was more than GDP, but now this difference has reduced.
In addition, the bulletin states that there is still a positive relationship between nightlight data and tax collection or GDP. This means that now more people are doing transactions in digital and formal ways, causing reduced cash transactions.
(Tagstotranslate) Indian Economy (T) RBI Bulletin (T) Global Growth Slowdown (T) CPI Inflation (T) Rural Inflation India (T) Financial Markets (T) Financial Markets (T) Monsoon Forecast India (T) Equity Market (T) India Economic Growth (T) Global Slowdown
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