Reserve Bank of India's May Bulletin predicts India's long-awaited economic take-off due to rising aggregate demand and increased rural non-food spending.
The Reserve Bank of India's May Bulletin suggests India is on the cusp of a long-awaited economic take-off, driven by rising aggregate demand and increased non-food spending in the rural economy. Rural demand for fast-moving consumer goods (FMCG) outpaces urban markets for the first time in two years, while private investment in listed private manufacturing companies has also increased, with retained earnings as the primary source of funds. However, inflation may remain elevated due to rising food prices.
May 21, 2024
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