Domestic economic activity continued to be resilient, says RBI

Reserve Bank of India (RBI) stated in its latest monthly update that economic activity continued to be resilient in January, underpinned by upbeat demand conditions. Quarterly results of listed private companies show strengthening aggregate sales growth. Industrial activity remained strong, and services sector sustained its healthy growth. The Union Budget 2026- 27 reaffirmed Governments commitment to fiscal consolidation without diluting the focus on long-term growth with stepped up allocation towards capital expenditure. The Union Government also accepted most of the recommendations of the 16th Finance Commission, thereby opting for a new formula for horizontal devolution of funds recognising the contribution of states to Indias growth. By adhering to a credible path of fiscal consolidation, maintaining a strong thrust on capital expenditure, and prioritising infrastructure, innovation, and human capital development, the Government has reinforced the foundations for long-term growth.

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