Rising confidence to fuel economy in 2025: RBI governor

Prospects for the Indian economy are expected to improve in 2025 thanks to high consumer and business confidence, Reserve Bank of India (RBI) governor Sanjay Malhotra said in his foreword to the Financial Stability Report, which pegged the real GDP growth for the current fiscal year at 6.6%.

- Gopika Gopakumar

MUMBAI:

In the bi-annual report released on Monday, Malhotra said that despite global uncertainties, the Indian economy is expected to pick up in the second half of the current fiscal. "Notwithstanding the uncertainties shrouding the global macro-financial ethos as it unfolds, prospects for the Indian economy are expected to improve after the slowdown in the pace of economic activity in the first half of 2024-25," said Malhotra, who took over as the central bank's 26th governor earlier this month.

"Consumer and business confidence for the year ahead remain high and the investment scenario is brighter as corporations step into 2025 with robust balance sheets and high profitability," he added.