Denemek ALTIN - Özgür

Rate cut to boost demand, says RBI Report

BUSINESS ECONOMICS

|

March 1-31, 2025

On February 19, 2025, the Reserve Bank of India (RBI) released its monthly bulletin, providing insights into the state of the economy.

- Madhusudhanan S

Rate cut to boost demand, says RBI Report

The RBI stated, "The Indian economy is regaining its growth momentum, driven by a recovery in consumption demand and overall investment." According to the economic activity index, the RBI projected GDP growth for the fourth quarter (Q4) of 2024-25 at 6.6%.

The RBI analyzed the state of the economy based on the following factors:

Aggregate Demand
Aggregate Supply
Inflation
Financial Conditions

Additionally, it examined global economic trends and payment systems. While the full report is available in the RBI bulletin, here we highlight key takeaways from each aspect.

1. Aggregate Demand

Aggregate demand rebounded following a slowdown in the first half of the year (H1). Automobile sales grew by 2.5% YoY in January after two months of contraction, while petroleum consumption expanded by 3.1% YoY.

Toll collections showed strong growth in both volume and value, with e-way bill growth surging to 23.1% in January. Employment in the organized manufacturing sector increased at a record pace, according to the PMI survey. Job creation in the service sector also strengthened.

Under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), demand for work rose for the third consecutive month, growing 14.4% YoY in January due to the end of rabi sowing.

Merchandise exports contracted by 2.4% YoY in January, primarily due to a decline in oil exports. However, from April to January 2024-25, exports increased by 1.4%, driven by growth in engineering goods, electronics, rice, and pharmaceuticals. Meanwhile, imports grew by 10.3% in January and by 7.4% over April-January 2024-25, fueled by higher demand for gold, petroleum, and electronics.

BUSINESS ECONOMICS'den DAHA FAZLA HİKAYE

BUSINESS ECONOMICS

BUSINESS ECONOMICS

India's Economic Resilience in 2025: Navigating Global Headwinds with Domestic Strength

The Indian economy in 2025 continues to display remarkable resilience, driven by reorientation, reform, and robust fundamentals. Despite global challenges such as trade tensions and geopolitical uncertainty, India has sustained strong growth. This momentum has been powered by digital innovation, strategic public spending, and resilient domestic consumption.

time to read

3 mins

November 01 - 30, 2025

BUSINESS ECONOMICS

BUSINESS ECONOMICS

India's Russian Oil Strategy: A New Chapter in Energy Diplomacy

How Strategic Autonomy and Economic Rationality Are Redefining India's Global Role

time to read

2 mins

November 01 - 30, 2025

BUSINESS ECONOMICS

BUSINESS ECONOMICS

E-commerce platforms roll out grand sale strategies to boost festive spending

India's festive ecommerce season has opened on a high note, with Flipkart and Amazon registering record traffic and sales during their flagship events — The Big Billion Days (TBBD) and The Great Indian Festival (GIF), respectively. Strong consumer sentiment, GST cuts, and rising participation from Gen Z shoppers have created the most dynamic start yet for India's digital retail market.

time to read

2 mins

November 01 - 30, 2025

BUSINESS ECONOMICS

BUSINESS ECONOMICS

Beyond the Dollar: Gold, Silver and the new axis of reserve power

The year 2025 has brought unanticipated shifts in global financial markets.

time to read

4 mins

November 01 - 30, 2025

BUSINESS ECONOMICS

Indian Currency Under Crisis: RBI's Intervention to Prop Up the Rupee

The Indian rupee, like many emerging market currencies, has come under significant pressure over the past several months. This has coincided with a period of sustained depreciation of the US dollar, which has been weakening since Donald Trump was sworn in as the 47th President of the United States on January 20, 2025.

time to read

4 mins

November 01 - 30, 2025

BUSINESS ECONOMICS

Economics Nobel 2025 awarded to three economic historians for research on Innovation-Led Growth

The 2025 Nobel Prize in Economic Sciences has been awarded to Israeli-American Joel Mokyr of Northwestern University, Philippe Aghion of Collège de France and the London School of Economics, and Peter Howitt of Brown University for their pioneering research “for having explained innovation-driven economic growth.”

time to read

2 mins

November 01 - 30, 2025

BUSINESS ECONOMICS

BUSINESS ECONOMICS

Indians and Their Enduring Love for Gold

Indians love gold. For many, it remains a safer and more dependable savings option than real estate, stocks, or bonds.

time to read

2 mins

November 01 - 30, 2025

BUSINESS ECONOMICS

BUSINESS ECONOMICS

GST rate cuts, Income Tax relief, and subsidies to Entrepreneurs will help sustain growth, says CEA – But experts remain skeptical

V. Anantha Nageswaran, Chief Economic Advisor (CEA) to the Government of India, has expressed confidence that India's GDP will grow by 7% in the second half of the current financial year (FY). He noted that the 7.8% GDP growth recorded in the previous two quarters had already been anticipated.

time to read

2 mins

November 01 - 30, 2025

BUSINESS ECONOMICS

BUSINESS ECONOMICS

India's fields of the future: Harvesting sunlight and crops together

India's farmland has always carried the burden of uncertainty.

time to read

2 mins

October 01 - 31, 2025

BUSINESS ECONOMICS

BUSINESS ECONOMICS

DURGA PUJA: A Festival of Roots, Culture and Togetherness

Durga Puja and Navaratri are not merely festivals of worship and celebration.

time to read

2 mins

October 01 - 31, 2025

Listen

Translate

Share

-
+

Change font size