RBI Bulletin: Investment, Growth To See Uptick On Back Of Fiscal, Monetary Measures In FY26

An uptick in investment and growth is likely to be seen due to an array of measures undertaken by the government in this financial year so far, according to the Reserve Bank of India's monthly bulletin released on Monday.

"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," it stated.

The statement comes in the backdrop of key measures enacted by the government, including a substantial reduction in the goods and services tax, and an overhaul of the rules governing India's labour sector.

The Indian economy, according to the RBI, 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.

Meanwhile, RBI Governor Sanjay Malhotra told a news channel on Monday that the central bank sees scope for a rate cut in December. "The latest data and macro indicators reinforce the belief that there is definitely scope," he said, but added that it is up to the Monetary Policy Committee (MPC) to take the call. The decision will be out on Dec. 5.

With PTI inputs