New Delhi. RBI said on Thursday that India (India) will also have the world’s fastest growing economy in FY 2025-26. It has estimated GDP growth to be 6.5% for this year. Although there are challenges like trade war, climate change and economic recession around the world, India’s situation remains strong.
The main points of the report
1. Control of inflation: The report states that inflation rate will be around 4% target in the next 12 months. The decrease in prices of commodities (raw materials), the improvement in good crop and supply chain from normal rains is the reason for this.
2. Consumption and production increased: People’s purchase (consumption) has increased. The service sector, factories (manufacturing) and agriculture performed well. There is also speed in the area of house building (residential).
3. Banking sector strong: Financial situation of banks and companies is fine, but need to monitor the interest rates and risks related to lending.
4. Global challenges: Economic conditions are not good in many countries of the world. Some countries are imposing new taxes on imports, which may affect India’s exports. RBI said that India will deal with these difficulties by making new trade agreements with other countries.
Indication of interest rates: The report indicated that interest rates may decrease in future. In the last two meetings, RBI has already cut rates. This step has been taken to reduce inflation and speed up the economy.
Have to monitor the risks: RBI says that vigilance is necessary to maintain India’s economy. Despite the global instability, the situation on the domestic front is good, but the risks have to be monitored. Especially banks will have to be careful while giving loans so that there is no problem in future.
