Indian Economy: Addressing Key Questions on Economic Growth and RBI's Rate Cut

Friday, 27 September 2024, 05:37

Indian economy growth slowed to 6.7% with significant questions on interest rates and fiscal deficit. The RBI is expected to consider rate cuts amidst consumption patterns and inflation challenges.
Financialexpress
Indian Economy: Addressing Key Questions on Economic Growth and RBI's Rate Cut

Understanding India's Economic Growth

India's economic growth has exhibited resilience even as it slowed to 6.7% in FY25.

RBI's Rate Cut Outlook

The Reserve Bank of India (RBI) is expected to take decisive rate actions following the October meeting, with predictions suggesting two cuts this fiscal year.

Consumption Patterns

  • Household consumption is projected to recover to 6% in FY25.
  • The K-shaped consumption pattern may narrow.

Fiscal Deficit Concerns

States are increasing welfare spending, potentially impacting fiscal deficit targets.

Global Monetary Factors

Global easing could influence RBI's decisions on rate cuts, with rising real interest rates becoming a pivotal topic.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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