Fri Jan 17 15:45:30 UTC 2025: ## India’s Economy Poised for Rebound, but Food Inflation Remains a Concern: RBI Bulletin
**Mumbai, India** – India’s economy is expected to rebound strongly in the coming months, driven by a resurgence in domestic demand, according to the latest Reserve Bank of India (RBI) Bulletin. The report, authored by a team led by former Deputy Governor Michael Patra, highlights a pick-up in high-frequency economic indicators, supporting the National Statistical Office’s (NSO) growth projections.
While the overall economic outlook is positive, the Bulletin cautions about persistent food inflation, which requires close monitoring for potential knock-on effects. Headline inflation eased in December for the second consecutive month, but the continued rise in food prices remains a concern.
The report notes a strengthening rural demand fueled by improved agricultural prospects and resilient consumption. Increased government spending on infrastructure is also anticipated to boost key sectors. However, potential risks remain, including rising input costs in manufacturing, adverse weather conditions, and global economic uncertainties.
The Bulletin offers a contrasting global economic picture, with slower growth projected for the US, weak recovery in Europe and Japan, and moderate growth in emerging markets. The RBI emphasizes that the views expressed in the Bulletin are solely those of the authors and do not necessarily reflect the official stance of the Reserve Bank of India.
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