RBI optimistic on the state of economy

Bank credit is increasing by double digits and the sustained surge in goods and service tax collections is signalling growing formalisation of the economy

The Diwali gift from Reserve Bank of India (RBI) is an optimistic report on the state of the economy in its October monthly bulletin. ‘India is likely to be among the few emerging economies that would be left standing after the global hurricane has passed’, it says. As all of us do this day, it looks at the brighter side of life. 

The RBI says that broader economic activity has remained resilient and poised to expand further. Domestic demand is accelerating, with auto sales having rebounded, real estate sales on the rise in spite of higher borrowing costs and the contact-intensive