The Reserve Bank of India stated that rising aggregate demand and increased non-food expenditure in rural regions are the main reasons why "India is standing on the brink of a long-anticipated economic surge".As per the RBI's article on the 'State of the Economy' published in the Bulletin, the global economy's outlook is becoming precarious due to the halting of inflation's decline, which is posing a renewed threat to the stability of global finance.
Michael Debabrata Patra, Deputy Governor of the Reserve Bank, led the team that authored the essay. It went on to say that as risk-averse investors get uneasy, money flows have become unstable. According to the report, "there is a growing optimism that India is on the cusp of a long-awaited economic take-off" since recent indications indicate an acceleration of aggregate demand.
It was mentioned that in the most recent quarter, rural demand for fast-moving consumer goods (FMCG) exceeded urban markets for the first time in at least two years. Due in large part to strong demand for personal care and home goods, rural areas saw an increase in FMCG volume of 6.5%, compared to 5.7% in urban areas.
Retained profits continued to be the primary source of funding for listed private manufacturing businesses in the second half of 2023–2024 before turning to private investment, according to the central bank.
According to the results that listed corporations have released thus far, they ended the 2023–24 fiscal year with the largest gain in quarterly sales, both sequentially and year over year, in January–March 2024.
.png "Indian economy is about to take off as per the RBI monthly report")
