India's Economic Outlook: A Festive Rebound Amid Global Challenges

The Reserve Bank Bulletin highlights a positive medium-term economic outlook for India as private consumption drives domestic demand post-September slump. Despite global uncertainties, domestic financial markets face corrections due to a strong US dollar. The article was led by RBI Deputy Governor Michael Debabrata Patra.

India's economic outlook appears optimistic, as indicated by the latest Reserve Bank Bulletin, released on Wednesday. Following a sluggish second quarter in 2024-25, private consumption is rebounding, spurred by festival spending, thus driving domestic demand.

The November Bulletin's article, 'State of the Economy,' points to the strengthening of India's macrofundamentals, suggesting a bullish medium-term forecast. However, the financial markets are experiencing corrections, exacerbated by the persistent hardening of the US dollar and portfolio outflows.

Globally, economic activity shows resilience despite fragile confidence and rising protectionism, a situation outlined in the article prepared by an RBI team under Deputy Governor Michael Debabrata Patra. It's important to note that the views expressed reflect those of the authors, not the central bank.

(With inputs from agencies.)