NEW DELHI: Despite the global headwinds, India’s economic growth is likely to be in the range of 6.1 to 6.3% in the second quarter (Q2) of the current fiscal, said an article published in the Reserve Bank’s bulletin released on Friday.
The apex bank pegged the current fiscal year gross domestic product (GDP) growth at 7%. “In India, supply responses in the economy are gaining strength. With headline inflation beginning to show signs of easing, the domestic macroeconomic outlook can best be characterised as resilient but sensitive to formidable global headwinds, the RBI said in its news bulletin.
Urban demand appears robust, rural demand is muted but more recently picking up traction, it added.
Industrial production (IIP) shed the contraction in August and turned in positive momentum in September on a seasonally adjusted basis after a gap of two months.
This is corroborated by the manufacturing purchasing managers’ index (PMI) for October. In the services sector, the PMI for October accelerated from a six-month low in September. The construction sector remains in expansion, and contact-intensive services, in particular, hospitality, travel and recreation, are experiencing explosive growth.
Aggregate demand, on the other hand, is showing an uneven profile. “While urban demand appears robust as the section on domestic developments profiles, rural demand which was muted, is gaining some strength recently,” said the RBI article. Lead indicators of economic activity point to sustained resilience of the Indian economy in an uncertain and increasingly hostile global environment.
Forex reserves up by $15 billion to $544.72 billion
New Delhi: India’s foreign exchange reserves increased by nearly $15 billion to $544.72 billion in the week ending November 11. This is the biggest weekly jump in more than a year, the Reserve Bank of India’s (RBI) weekly data showed on Friday. Forex reserves were at $529.99 billion by November 4. ENS