The government’s focus on infrastructure development, coupled with business optimism, could nurture a sustained revival in the investment cycle, according to an RBI report. As per the RBI’s Monetary Policy Report (April 2024), domestic economic activity, backed by strong fundamentals, remained robust in the first half of FY24, weathering challenges from a declining global demand. India’s economic growth performance is above the global average, and the issue is now about how to sustain it, primarily due to concerns about the external environment. The increasingly uncertain situation in West Asia is agitating the market, but consumer companies are hopeful of demand picking up, as moderating inflation and forecasts for a normal monsoon spur consumption.
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