The Indian economy is recovering from the slowdown in momentum witnessed in the September quarter, driven by strong festival activity and a sustained upswing in rural demand, according to a Reserve Bank of India bulletin released on Tuesday.
An article on the 'State of the Economy' in the December Bulletin noted that the global economy continues to exhibit resilience with steady growth and moderating inflation.
"High frequency indicators for the third quarter of 2024-25 indicate that the Indian economy is recovering from the slowdown in momentum witnessed in Q2, driven by strong festival activity and a sustained upswing in rural demand," it said.
The prospects for agriculture and hence rural consumption are looking up with brisk expansion of rabi sowing, said the article authored by a team led by RBI deputy Governor Michael Debabrata Patra.
India's GDP growth slowed to a seven-quarter low of 5.4 percent during the July-September period of the current fiscal year.
The RBI said the views expressed in the bulletin are of the authors and do not represent the views of the central bank. -- PTI