Global economy continues to grow at steady but moderate pace: RBI bulletin
The Reserve Bank of India (RBI) in its latest monthly bulletin-February 2025 has said that the global economy continues to grow at a steady but moderate pace, with divergent outlook across countries amid rapidly evolving political and technological landscapes. Besides, financial markets remain on edge on the slowing pace of disinflation and the potential impact of tariffs. Emerging market economies (EMEs) are witnessing selling pressures from foreign portfolio investors (FPIs) and currency depreciation engendered by a strong US dollar.
The monthly bulletin further noted that in India, high frequency indicators point towards a sequential pick-up in momentum of economic activity during H2:2024-25, which is likely to sustain moving forward. The Union Budget 2025-26 prudently balances fiscal consolidation and growth objectives by continued focus on capex alongside measures to boost household incomes and consumption. It added that retail inflation moderated to a five-month low in January, mainly due to a sharp decline in vegetable prices.
According to one of the articles included in monthly bulletin, the Union Budget 2025-26 reaffirms the Government’s commitment to fiscal discipline while fostering inclusive, long-term economic growth in line with the vision of ‘Viksit Bharat’. With a strategic focus on four key growth engines - agriculture, MSMEs, investment, and exports - the budget strikes a balance between immediate consumption support and long-term structural reforms.
