Mumbai: Before the proposed Union Budget, the Reserve Bank of India (RBI) bulletin has strongly advocated promoting consumption to boost the economy. It said that this time is suitable to arouse enthusiasm among the people, generate widespread consumer demand and accelerate investment. Finance Minister Nirmala Sitharaman will present the budget for 2025-26 in the Lok Sabha on February 1. An article published in the January Bulletin said that the first advance estimates for 2024-25 released by the National Statistical Office (NSO) on January 7 make it clear that India will remain the fastest growing major economy.
However, gross domestic product (GDP) growth is projected to decline to 6.4 percent after three consecutive years of growth of more than seven percent. It said this decline reflects the impact of several adverse factors such as the impact of locally excessive rainfall on non-agricultural activity in the first half of 2024-25.
There are no signs of growth in private capital expenditure
There are still no clear signs of a pick-up in private capital expenditure and there is also a slowdown in capital expenditure by the central and state governments. Along with this, gross fixed investment in Gross Domestic Product (GDP) and manufacturing in GVA have emerged as the biggest obstacles to growth. However, the central bank said the views expressed in the bulletin are those of the authors and do not represent the views of the Reserve Bank of India.
Improvement in the condition of rural economy due to Rabi crop
The article published from Top State of the Economy said that agriculture and allied activities have performed well due to the record Kharif crop. There has been more Rabi sowing, which has improved the condition of the rural economy. Headline inflation declined for the second consecutive month in December. This is due to falling prices in winter, when production of fruits and vegetables is in abundance.
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This article has been written by the team led by Michael Patra. Deputy Governor Patra's extended tenure ended this month. The article said that this is the right time to go all out, create large-scale consumer demand and accelerate investment.
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