New Delhi, Oct 15
India’s growth outlook remains resilient, supported by domestic drivers, despite weak external demand, and is likely to get further support from a favourable monsoon, lower inflation, monetary easing and the salubrious impact of recent GST reforms, the Reserve Bank of India (RBI) said on Wednesday.
Domestic economic growth was resilient in Q1 2025-26. High-frequency indicators suggest that it is likely to remain strong in Q2.
Headline CPI inflation moderated to an eight-year low of 1.6 per cent in July before inching up to 2.1 per cent in August. The decline in inflation was primarily driven by the food component due to improved supply conditions and measures undertaken by the government to manage the supply chain.