Robust domestic engines supporting India's growth outlook: RBI Bulletin

India's growth outlook is supported by robust domestic engines and private investment showing some encouraging signs despite geopolitical tensions, the Reserve Bank's October Bulletin said on Monday.

The global economy remained resilient in the first half of 2024, with declining inflation supporting household spending.

Stable growth momentum amid monetary policy easing is becoming the prevailing theme across most economies, according to an article on 'State of the Economy' published in the Bulletin.

"In spite of geopolitical tensions, India's growth outlook is supported by robust domestic engines," it said.

It also noted that some high-frequency indicators have, however, shown a slackening of momentum in the second quarter of 2024-25, partly attributable to idiosyncratic factors like unusually heavy rains in August and September.

"Looking ahead, private investment is showing some encouraging signs in terms of lead indicators while consumption spending is shaping up for a festival season revival," said the article authored by a team led by RBI deputy governor Michael Debabrata Patra.

After remaining below target for two consecutive months, inflation surged in September, as an adverse statistical base effect was compounded by a resurgence in food price momentum.

The central bank said the views expressed in the Bulletin article are of the authors and do not represent the views of the Reserve Bank of India.