Last week, an article on the state of the economy by the Reserve Bank of India (RBI) staff acknowledged “a shift from consumption to investment,” and said that this underpinned the upside surprise in the National Statistical Office’s first advance estimates of the national income (real GDP growth of 7.3%) for FY24.
The authors including deputy governor Michael Debabrata Patra talked about the government’s thrust on capex “starting” to crowd-in private investment, and the “ebullience in residential housing.” The rate of real fixed investment is at a historic high (of nearly 35%) in 2023-24 and this “augurs well for enhancing the productive capacity of the economy and…
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