News Brief

"India On Cusp Of Long-Awaited Economic Takeoff; Sentiments On Income, Employment At Pre-Pandemic Levels": RBI

Nishtha Anushree

May 21, 2024, 08:02 PM | Updated 07:58 PM IST

The Reserve Bank of India.
The Reserve Bank of India.

The Reserve Bank of India (RBI) issued its monthly bulletin on Tuesday (21 May) suggesting a growing optimism in India and that the country is on the cusp of a long-awaited economic take-off. 

This is in contrast to the global economy, which is turning fragile as the descent of inflation is stalling, re-igniting risks to global financial stability.

"Capital flows have become volatile as nervous investors turn risk averse," RBI says contrasting with India's economy where there is "a quickening of the momentum of aggregate demand."

"Non-food spending is being pushed up by the green shoots of rural spending recovery," RBI says adding that there is a modest easing of headline inflation.

On consumer confidence, it says that the south and west regions showed higher levels compared to the national average, while the northern region exhibited intermittent optimism.

"The study found that the relationship between households’ sentiment on their own income and their view on the overall employment scenario has returned to pre-pandemic levels for all regions," it added.

Nishtha Anushree is Senior Sub-editor at Swarajya. She tweets at @nishthaanushree.

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