RBI Report Highlights Strong Domestic Demand Supporting India's Economic Growth Momentum

Key facts

• Strong domestic demand, services activity, and exports supported India's economic momentum despite rising inflation and geopolitical tensions.
• Headline Consumer Price Index (CPI) inflation reached 5.5% in September, marking a 23-month high from 4.8% in August.
• Core inflation rose to 4.3%, while core inflation excluding precious metals stood at 3.2%.
• Wholesale Price Index (WPI) inflation climbed to 11.4% under the 2022-23 base series.
• Higher minimum support prices were announced on September 30 for the 2027-28 rabi marketing season to ensure remunerative prices and incentivise crop diversification.
• The IMF outlook remains subject to downside risks, including the West Asia conflict, trade tensions, high sovereign bond yields, elevated public debt, and concerns over fiscal sustainability.
• Global growth projections for 2027 assume the reopening of the Strait of Hormuz in March and a broad return to pre-war conditions by October 2027.