IGI Logo

The Reserve Bank of India (RBI) in its article has said that waning input cost pressures, still buoyant corporate sales and turn-up in investments in fixed assets are heralding the beginning of an upturn in the capex cycle in India which will contribute to a speeding up of growth momentum in the Indian economy. It noted that the balance of risks is increasingly tilted towards a darkening global outlook and emerging market economies (EMEs) appear to be more vulnerable, even though incoming data suggest that global inflation may have peaked.

According to the article, the near-term growth outlook for the Indian economy is supported by domestic drivers as reflected in trends in high-frequency indicators and added that equity markets touched a string of new highs during November buoyed by strong portfolio flows to India. Headline inflation moderated by 90 basis points to 5.9 per cent in November driven by a fall in vegetable prices even as core inflation remained steady at 6 per cent.

The article further said that in December, as India engages in setting out its priorities and deliverables under its G20 Presidency, there is a sense that perhaps her time in the centre of the world's stage has arrived. As the third largest economy in PPP terms, and the fifth largest in terms of market exchange rates, India accounts for 3.6 per cent of G20 GDP while its share in real (PPP) terms is much higher at 8.2 per cent. In 2023, India is projected to be among the fastest-growing economies within G20.