Higher kharif sowing would translate to a sustained growth momentum in the agriculture sector while also keeping 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 tariff brought in some headwinds to the domestic macro-outlook, the developments since then have underscored the resilience of the economy,” they wrote in the article titled State of the Economy.
Stating that the recent S&P sovereign rating upgrade was an acknowledgement of the economy’s strong macro-fundamentals, they said the Q1:2025-26 GDP estimates reinforced the resilience of domestic growth drivers.
“High frequency indicators for August show manufacturing and services activity at a decadal high. In this scenario, the growth outlook for H2 is one of optimism,” they emphasized.
“Healthy corporate balance sheets and the focus on structural reforms by the government are the bright spots of the economy. The landmark GST reforms should progressively result in a sustained positive impact through significant gains in ease of doing business, lower retail prices and strengthening of consumption growth drivers, the officials stated.
According to them the higher kharif sowing would translate to a sustained growth momentum in the agriculture sector, while also keeping food prices under check.
“The transmission of the front-loaded monetary policy easing measures have been robust. Coupled with income tax relief for households and employment augmenting measures, the stage is set for a sustained pick-up in consumption demand in H2 and potentially for a virtuous cycle of higher investments and stronger growth impulses, overcoming persistent global uncertainties,” they concluded.
Published – September 24, 2025 09:23 pm IST