The Reserve Bank of India has observed that India’s GDP growth remains robust, propelled by vigorous investment demand backed by sound bank and corporate balance sheets. This growth is further reinforced by the government’s emphasis on capital expenditure and the implementation of prudent monetary, regulatory, and fiscal policies. Despite encountering challenges from a complex global economic scenario, India’s economy is well-poised to advance its growth trajectory over the coming decade, maintaining stability both macroeconomically and financially. The gradual decline in headline inflation towards the target is anticipated to spur consumption demand, particularly in rural areas, contributing to sustained economic expansion.
Furthermore, the report underscores the resilience of India’s external sector, strengthened by ample foreign exchange reserves, which act as a cushion against global economic upheavals. Nevertheless, the outlook is not devoid of risks, as geopolitical tensions, economic fragmentation, financial market volatility, fluctuations in commodity prices, and climate-related events present potential threats to growth and inflation. Additionally, the swift adoption of AI/ML technologies and recurrent climate-related crises pose ongoing challenges that necessitate careful navigation. The annual report, mandated by the RBI’s central board of directors, provides comprehensive insights into the institution’s activities and performance during FY24.
