Key Takeaways from RBI’s December 2024 Bulletin

The Reserve Bank of India's latest Monthly Bulletin brings insights into India's economic trajectory, monetary policies, and fiscal analyses. The Bulletin includes:

The Bi-monthly Monetary Policy Statement for December 2024-25.

• 10 speeches and 4 research articles.
• A comprehensive statistical update.

State of the Economy

India's economy shows recovery, driven by festival activity and rural demand. Key highlights:

• CPI inflation moderates to 5.5% in November due to falling food prices.
• Government Finances

A half-yearly analysis of fiscal trends reveals:

• Central tax collections see an uptick on GST and income tax gains.
• States face reduced non-tax revenues and capital expenditure, impacting infrastructure investments.
• Bank Reserves Management

Advances in reserve maintenance practices point out efficiency improvements, which reduces daily reserve volatility.

Exchange Rate & Trade Balance

Real Effective Exchange Rate (REER) studies show:

• Depreciation benefits trade balance more in the short run.
• Appreciation poses challenges for long-term trade dynamics.

This Bulletin provides a clear lens on India's fiscal, monetary, and trade landscape.