Synopsis India’s gross domestic product (GDP) expanded 7.8% in the first quarter of FY24, through which the RBI expects the economy to grow 6.5%. An ET poll of economists has pegged the second-quarter growth rate at 6.7%. Several global economic think-tanks expect India to be the growth driver through this year and the next although global trade remains rather shaky, posing expansion challenges for several competing high-growth economies. Agencies The RBI said that in urban areas, consumer appliances are in strong demand through the season, especially in the mid and premium segments. MUMBAI: The Indian economy , buttressed by North Block’s unwavering focus on productivity-boosting structural reforms, investments and ‘ebullient’ domestic consumption, is expected to expand faster in the third quarter than earlier estimated despite lingering growth concerns beyond home, the central bank said in its latest bulletin Thursday. “Investment demand appears to be resilient with the government’s infrastructure spending, an uptick in private capex, automation, digitalisation, and indigenisation providing a boost,” the Reserve Bank of India ( RBI ) said. India’s gross domestic product (GDP) expanded 7.8% in the first quarter of FY24, through which the RBI expects the economy to grow 6.5%. An ET poll of economists has pegged the second-quarter growth rate at 6.7%. Several global economic think-tanks expect India to be the growth driver through this year and the next although global trade remains rather shaky, posing expansion challenges for several competing high-growth economies. The RBI bulletin said the global economy is showing signs of slowing in the final quarter of 2023. By contrast, the pace of expansion in third-quarter GDP in India should be faster sequentially, with festival demand remaining “ebullient”. The central bank now expects the economy to grow 6.3% in the third quarter (OctoberDecember), from 6% it estimated in the October monetary policy . The RBI said that in urban areas, consumer appliances are in strong demand through the season, especially in the mid and premium segments. About four-fifths of consumer durable purchases are backed by consumer financing schemes spiced up with attractive equated monthly instalment (EMI) offers. The entry-level segment demand is, however, relatively subdued as ‘premiumisation’ shows clear signs of developing into a consistent trend. CAPEX REVIVAL The central bank noted that the balance sheets of banks and corporates are the healthiest in a long time and with the public investment push by the government, they create favourable conditions for a sustained revival in investment. “The policy focus on strengthening macroeconomic fundamentals and continued structural reforms have made India distinct in terms of growth outcomes,” the RBI bulletin said. While growth remains on track, inflation is on a path of moderation, although the consumer price gauge remains above the target, the RBI noted. The monetary policy committee (MPC), in its October 2023 meeting, has projected consumer inflation at 5.4% for FY24, a moderation from 6.7% in FY23. “Headline inflation, however, remains vulnerable to recurring and overlapping food price shocks,” the RBI said. The tightening of financial conditions is a major risk to the global outlook, with the recent spike in bond yields indicative of further impending passthrough to borrowing costs, the RBI said. Pointing to the intensifying geopolitical strife that has “flung a pall” of uncertainty around the global economy as it slows in the final quarter of 2023, the RBI said that Europe appears to be on the edge of a recession while China is stalling. The US has emerged as a key driver of global growth, although its economic outlook is more uncertain now than earlier. Experience Your Economic Times Newspaper, The Digital Way! Thursday, 16 Nov, 2023 Read Complete ePaper » Digital View Print View Wealth Edition Lenders Look to De risk Promoter Guarantees Indian lenders will now insist that a negative lien is created on the assets underlying personal guarantees given by promoters of companies raising bank loans, said people at advisory firms. The move is aimed at preventing them from transferring these personal assets to a special trust, which may be bankruptcy remote. India Inc Q2 Profit Surges, Revenue Growth Muted India Inc delivered strong double-digit growth in net profit in the September quarter, riding a stellar show by automobiles, banking and finance, cement and metal companies with a domestic focus. Real Money eGaming Banned? Players Now Game the System Scores of die-hard gaming enthusiasts are devising innovative ways to continue playing on real money gaming apps that are banned across states such as Telangana, Odisha, Arunachal Pradesh, Sikkim and several others, according to lawyers and industry experts with an overview of the sector. Read More News on rbi indian economy gross domestic product monetary policy consumer inflation (Catch all the Business News , Breaking News Events and Latest News Updates on The Economic Times .) Download The Economic Times News App to get Daily Market Updates & Live Business News. … more less Prime Exclusives Investment Ideas Stock Report Plus ePaper Wealth Edition RBI new norms give breather to banks. Is this the UPI moment for cross-border payments in India? YouTube ustads and Insta gurus: Novice stock traders turn to social media for guidance. How this tiny Pacific Island became the global capital of cybercrime As US eases sanctions on Venezuela, India finds its next Russia to buy discounted oil 4 insights to kick-start your day, featuring a snag in the Daiichi-Fortis deal Stock Radar: Grasim Industries likely to hit fresh record highs in short term; may surpass Rs 2100 1 2 3 View all Stories