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As on : 20-Aug-2025

Economy - Reports
20-Aug-2025 18:14

Economic growth has remained steady, inflation outcomes have been far more benign notes RBI Governor

Reserve Bank of India (RBI) Governor Sanjay Malhotra has stated that Domestic growth has evolved largely in line with the assessment set out in RBI's June policy. Growth projected at 6.5 per cent is resilient, considering the current uncertain environment which shows no signs of abatement. However, this is certainly lower than what we can achieve. High-frequency indicators point toward buoyant rural economic activity and consumption, whereas urban spending continues to remain sluggish. According to the minutes of the latest monetary policy meeting, the RBI Governor opined that overall, our economy presents a picture of strength, stability, and opportunity. India's strong fundamentals, growth inducing policies, and forward-looking economic strategy clearly place it in a strong position. While growth has remained steady, inflation outcomes have been far more benign on account of higher food price moderation. Although we are likely to see inflation undershooting the target in the near term, with a likelihood of monthly numbers even crossing the lower tolerance band of 2 per cent, headline inflation is projected to inch up from Q3 onwards.

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