Higher kharifsowing would translate to a sustained growthmomentum in the agriculture sector while alsokeeping food prices under check, as per the bulletin.
| Photo Credit: IDREES MOHAMMED
Irrespective of the headwinds caused to the domestic macro-outlook by the imposition of high U.S. import tariff, the growth outlook for H2 is one of optimism, Reserve Bank of India (RBI) officials said in the September edition of RBI Bulletin.
“While the imposition of high U.S. import tariffbrought in some headwinds to the domesticmacro-outlook, the developments since then haveunderscored the resilience of the economy,” they wrote in the article titled State of the Economy.
Stating that the recent S&Psovereign rating upgrade was an acknowledgementof the economy’s strong macro-fundamentals, they said the Q1:2025-26GDP estimates reinforced the resilience of domesticgrowth drivers.
“High frequency indicators for Augustshow manufacturing and services activity at a decadal high. In this scenario, the growth outlook for H2 is oneof optimism,” they emphasized.
“Healthy corporate balance sheets andthe focus on structural reforms by the government arethe bright spots of the economy. The landmark GSTreforms should progressively result in a sustainedpositive impact through significant gains in ease ofdoing business, lower retail prices and strengtheningof consumption growth drivers, the officials stated.
According to them the higher kharifsowing would translate to a sustained growthmomentum in the agriculture sector, while alsokeeping food prices under check.
“The transmissionof the front-loaded monetary policy easing measureshave been robust. Coupled with income tax relief forhouseholds and employment augmenting measures,the stage is set for a sustained pick-up in consumptiondemand in H2 and potentially for a virtuous cycle ofhigher investments and stronger growth impulses,overcoming persistent global uncertainties,” they concluded.
Published – September 24, 2025 09:23 pm IST
