Economy
There are signs of boom in economic activities in the second half of the current financial year in the country and it is expected to continue further. Figures like vehicle sales, air traffic, steel consumption and GST e-way bill are confirming this. This has been said in the Bulletin of the Reserve Bank of India (RBI) on Wednesday. An article on RBI’s February Bulletin also states that the US economy is strengthening the dollar and the trade policy is strengthening. This can increase the withdrawal of capital from emerging economies and the situation on the external front may be critical. It states that the pace of economic activities is expected to continue in the midst of all this.
Hope to promote rural demand
The strong performance of the agriculture sector is expected to further boost rural demand. Urban demand is also expected to improve urban demands, given the increase in inflation with the fall in inflation amid income tax relief announced in the Union Budget of FY 2025-26. The article said, “… The high frequency indicators of the second half of the current financial year 2024-25 (vehicle sales, air traffic, steel consumption etc.) are indicating an increase in economic activities on a half-year-old basis and continue further The possibility of. “The Economic Activity Index (EAI) is produced by using the ‘dynamic factor model’ by removing the general trend from 27 high frequency indicators of economic activities. It also states that the global economy is growing stable but moderately in different countries with different approaches in different countries amidst rapidly developing political and technical scenario.
Concern situation in financial market
The article states that there is a situation of concern in the financial market due to the slow pace of inflation and the possible impact of the fee rate. Foreign portfolio investors (FPIs) are seen to have a decline in exchange rate due to the selling pressure of foreign portfolio investors (FPI) and strong US dollars in emerging market economies. According to this, “Four engines of development are expected to promote the medium -term development prospects of the Indian economy with measures to promote agriculture, MSME, investment and exports.”
Balance has been balanced in the budget
The article said, “The Union Budget has a balance between fiscal strength and growth goals with understanding. While there is emphasis on capital expenditure on the one hand, on the other hand there is a blueprint for decreasing debt along with promoting consumption. Domestic demand is also expected to gain momentum with cuts. The central bank has clearly stated that the views expressed in the article are of writers and do not represent the views of the Reserve Bank of India.
(PTI/Language)
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