Mumbai, Jan 17 (PTI) India's economic growth is poised to rebound as domestic demand regains strength, though the stickiness in food inflation warrants careful monitoring, the latest RBI Bulletin released on Friday said.

An article on the 'State of the Economy' published in the January Bulletin also noted that the economic outlook for 2025 is divergent across countries with some loss of speed in the US; weak-to-modest recoveries in Europe and Japan; more moderate growth profiles in emerging and developing countries alongside a more gradual disinflation relative to advanced economies.

"In India, there is a conducive quickening of high-frequency indicators of economic activity in the second half of 2024-25, bearing out the implicit pick-up in real GDP growth for this period in the annual first advance estimates of the NSO," it said.

It further said, the headline inflation eased for the second successive month in December, although the stickiness in food inflation warrants careful monitoring of second order effects.

The article has been authored by a team lead by Michael Patra, who demitted the office of RBI Deputy Governor earlier this month.

"India's economic growth is poised to rebound as domestic demand regains strength. Rural demand continues to gain momentum, reflecting a resilience in consumption, supported by brighter agricultural prospects," the article said.

A revival in public capex on infrastructure is likely to stimulate growth in key sectors.

It also noted that rising input cost pressures in the manufacturing sector, coupled with weather-related exigencies and global headwinds could, however, pose risks to this outlook.

The central bank, however, said the views expressed in the Bulletin are of the authors and do not represent the views of the Reserve Bank of India. PTI NKD CS DRR

Economic growth rebound: domestic demand and public capex support recovery while food inflation and input cost risks persist. India's growth is expected to quicken as domestic and rural demand strengthen and public capital expenditure revives, while headline inflation has eased but persistent food inflation needs monitoring; downside risks include rising manufacturing input costs, weather related disruptions, and global headwinds, and the Bulletin's commentary represents the authors' views rather than the central bank's.