Private consumption rebounds, festive season sparks economic revival: RBI

Private Consumption Rebounds, Festive Season Sparks Economic Revival: RBI: The Reserve Bank of India’s (RBI) November Bulletin highlights a rebound in private consumption driven by festive spending, signaling an economic revival. The ‘State of the Economy’ article notes that global economic activity remained resilient in Q4 FY24 despite fragile confidence and rising protectionism. In India, the slowdown observed in Q2 FY25 has ended, with private consumption driving domestic demand in Q3. The medium-term outlook remains positive, supported by strong macro-fundamentals. The article, led by RBI Deputy Governor Michael Debabrata Patra, emphasizes the resilience of the Indian economy, underpinned by festival-related consumption and a recovering agriculture sector. Record production estimates for kharif foodgrains and promising rabi crop prospects are expected to boost farm income and rural demand. The industrial sector, particularly manufacturing and construction, is expected to sustain dynamism, while the services sector is projected to maintain growth momentum.