RBI projects GDP growth at 7% in Q2 FY25

The Reserve Bank of India’s (RBI) economic activity index (EAI) projects gross domestic product (GDP) growth at 7 per cent in the second quarter (Q2) of this fiscal (FY25) on the back of a ticking up of momentum relative to the preceding quarter.

High-frequency indicators show that demand remained firm in August 2024, with e-way bills reaching a record high, according to the latest RBI Bulletin.

Headline inflation edged up to 3.7 per cent in August this year from 3.6 per cent in July. The marginal increase in inflation came entirely from an unfavourable base effect of around 5 basis points (bps), while the index remained unchanged at the previous month’s level.

The purchasing managers’ index (PMI) for August indicated that the rate of expansion of input costs and selling prices moderated for manufacturing. Manufacturing PMI input costs declined to a five-month low.

India’s merchandise exports at $34.7 billion contracted by 9.3 per cent year on year (YoY) in August, mainly due to an unfavourable base effect that more than offset the positive momentum. Exports of 11 out of 30 major commodities (accounting for 37.8 per cent of the export basket) contracted on an YoY basis in the month.

Recent research on the energy outlook indicates that energy transition has accelerated in recent years, with the pace of clean technology deployment and capital investment surging to record levels, the newsletter noted.

Fibre2Fashion News Desk (DS)