Reviving India's Economic Spirit: A Call for Consumption Boost

Ahead of the Union Budget presentation, the Reserve Bank Bulletin stresses the need for a consumption boost to stimulate economic growth, amid India’s moderated GDP growth of 6.4%. The article cites improved rural economy due to a good harvest and eased headline inflation, urging action to reignite consumer demand.

In anticipation of the Union Budget, the Reserve Bank Bulletin has emphasized the urgent need for a consumption boost to galvanize India's economic growth. With GDP growth now at a moderated 6.4%, the call to rekindle consumer demand and investment is more pertinent than ever.

Finance Minister Nirmala Sitharaman is set to present the Union Budget 2025-26. The National Statistics Office confirmed on January 7 that India remains the fastest-growing major economy, albeit with slowed growth, partly due to excessive rainfall impacting non-farm sectors.

Nonetheless, the 'State of the Economy' article notes an improved rural economy thanks to a record kharif harvest and rising rabi sowing. Inflation, meanwhile, has eased due to favorable seasonal price drops, offering a window of opportunity to spur economic momentum.

(With inputs from agencies.)