Mumbai: The fiscal, monetary, and regulatory measures undertaken so far this year will pave the way for a virtuous cycle of higher private investment and growth, leading to long-term economic resilience, the RBI bulletin said on Monday. The Indian economy showed signs of a further pick-up in momentum, despite continuing global headwinds, said an article on 'State of the Economy' published in the November bulletin.
"Available high-frequency indicators for October suggest a robust expansion in both manufacturing and services activities, supported by festive season demand and the ongoing positive impact of the GST reforms," it said.
Inflation has moderated to a historic low and remained well below the target rate, it said, adding that financial conditions remained benign, and the flow of financial resources.
"The fiscal, monetary, and regulatory measures undertaken so far this year should pave the way for a virtuous cycle of higher private investment, productivity, and growth, leading to long-term economic resilience," the article said.
It also highlighted that global uncertainty remains elevated, although October witnessed a slight pullback after more than a year of continuous increase.
Concerns persist about the heightened exuberance in global equity markets, raising questions about its sustainability and implications for financial stability, it added.
The central bank, however, said the views expressed in the 'State of the Economy' article published in the bulletin are those of the authors and do not represent the views of the Reserve Bank of India.
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