Trend upshift in growth post pandemic, rises to 8% in 2021-24: RBI report [Read More]

India's economic growth has surged, averaging over 8% from 2021 to 2024 compared to 7% during 2003-2019, reflecting a post-pandemic upshift in trend. The Reserve Bank of India's report, authored by deputy governor Michael Patra and others, highlights FY24's real GDP growth at 8.2%, surpassing expectations. \r

Private consumption is rebounding as the primary demand driver, extending to rural sectors. Strong revival in private investment is anticipated to lead future growth amid fiscal consolidation efforts. Government emphasis on capital expenditure is viewed positively for medium-term economic prospects. The report also notes improved net exports, particularly in high-end manufacturing.\r

Despite inflationary challenges from food prices, declining CPI inflation signals potential benefits for aggregate demand from cost reductions.