Extreme deprivation, once synonymous with India, is set to become extinct: RBI
economy is cognisant of the fact that the Indian economy is on the cusp of a long-awaited takeoff, the Reserve Bank of India on Tuesday said that extreme deprivation is set to become extinct.
The central bank in its monthly bulletin noted that external agencies like International Monetary Fund and the World Bank have shown considerable appreciation for the dramatic reduction in poverty seen in recent decades.
The World Bank has estimated that only 12.9 per cent of the Indian population lived on $2.15 per day at the height of the Covid-19 pandemic in 2021. $2.15 is the the global benchmark for extreme poverty.
The IMF in its April 2024 World Economic Outlook noted that it expects robust growth in 2024 and 2025, “reflecting continuing strength in domestic demand and a rising working-age population”.
«Internationally there is a growing optimism that India is on the cusp of a long-awaited economic takeoff,» the central bank said in its State of the Economy article in the bulletin.
India economy outlook
Net profits for India's listed non-financial companies declined year-on-year for the first time after four consecutive quarters of robust growth.
«This suggests that gross value added (GVA) by manufacturing would have been muted in the fourth quarter of 2023-24 relative to preceding quarters, weighing in on overall GVA/GDP growth of the economy,» RBI said.
Data indicators sow that economic activity in India rebounded in April. The RBI expects Q1FY25 GDP growth to hover around 7.5 per cent.
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