Prospects of economy likely to improve in 2025, says RBI Guv

He further said that despite the global uncertainties Indian economy is expected to pick up pace in the second half of the current fiscal

- OUR CORRESPONDENT

MUMBAI: Facing criticism from the government over the central bank prioritising inflation over growth, the new RBI Governor Sanjay Malhotra on Monday said that prospects of the Indian economy are expected to improve on the back of high consumer and business confidence in 2025.

"As we strive to preserve financial stability to support a higher growth path for the Indian economy, our focus remains steadfast on maintaining stability of financial institutions and, more broadly, the systemic stability," Malhotra said in the foreword to the Financial Stability Report.

He further said that despite the global uncertainties Indian economy is expected to pick up pace in the second half of the current financial year.

"Notwithstanding the uncertainties shrouding the global macro-financial ethos as it unfolds, prospects for the Indian economy are expected to improve after the slowdown in the pace of economic activity in the first half of 2024-25.