GDP growth maintaining pace seen in Q4, says RBI bulletin

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Also read | RBI, Sebi monitoring high volumes in F&O market In the years since the covid-19 pandemic, India’s growth trajectory is seen to be shifting upwards from the 2003-19 average of 7% to the 2021-24 average of 8% or even more, powered by domestic drivers, the article said. “More recent indicators suggest that private consumption is resuming its role as the main driver of demand and is getting broad-based to include rural consumers," it said, adding that the fast-moving consumer goods (FMCG) sector is gearing up for a strong turnaround on expectations of a pick-up in public welfare spending.

Among other indicators, the article said that a decline in walk-in shoppers is being compensated for by e-commerce platforms, especially in heatwave conditions. Investment, it said, has maintained steady growth, although some moderation in the immediate past could be on account of transitory uncertainty weighing on investment decisions, but it shall pass.

“A strong revival in private investment has to become the most important factor driving growth in the years to come, especially as public finances consolidate," it reiterated. In its February bulletin, the article on the state of the economy had called upon India Inc.

to lead the way in capital expenditure (capex), a space being dominated by large government spending in recent times. The corporate sector, the article had said, must “get its act together", ready to relieve the government of capex heavy lifting.

The article pointed to the MPC assessment and said that high frequency indicators of activity reflect a sustained momentum in manufacturing and services. “The prospects for agriculture are brightening with the expectations of an above-normal SWM (South West monsoon) and