India’s economy is displaying resilience and growth despite facing hurdles, as stated in an article published in the Reserve Bank of India’s (RBI) monthly bulletin on Tuesday.

According to the article, India’s real GDP growth surged to 8.4 percent in the third quarter of the fiscal year 2023-24, marking a six-quarter high.

This growth is attributed to healthier corporate and bank balance sheets and a resurgence in rural consumption, as highlighted in the article by RBI deputy governor Michael Debabrata Patra.

Private consumption also recorded a slight uptick, while gross fixed capital formation continued to grow at a double-digit rate.

Persistent increases in food prices pose a challenge in bringing inflation down to the targeted 4 percent, according to the article.

Although economic activity experienced a minor slowdown in January, it regained momentum in February 2024. The article projects GDP growth for the fourth quarter of the fiscal year 2023-24 to reach 7.2 percent.

Looking ahead, projections indicate that GDP growth will remain strong at 7.4 percent during the 2024-25 fiscal year. Additionally, Consumer Price Index (CPI) inflation is estimated to average 4.4 percent during the same period, lower than the previous year’s projection.

The latest estimates from the National Statistical Office (NSO) show that India’s real GDP growth for 2023-24 has been revised upwards to 7.6 percent. This revision is mainly due to higher gross fixed capital formation and reduced drag from net exports.

Despite challenges in the global market, high-frequency indicators suggest continued strength in domestic demand conditions, with significant increases observed in e-way bills and toll collections in February 2024, the article said.