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of <h1>RBI Bulletin: Economic Activity to Rise in Late FY 2024-25 Amid Strong US Dollar and Global Uncertainties</h1> High frequency indicators such as vehicle sales, air traffic, and GST E-way bills suggest a sequential increase in economic activity in the latter half of fiscal year 2024-25, according to the RBI Bulletin. Despite this growth, a strong US dollar may lead to capital outflows and increased risk premiums for emerging markets. The Indian economy is expected to benefit from strong rural demand, urban demand recovery, and income tax relief from the Union Budget 2025-26. Additionally, domestic demand may rise following a repo rate cut. Foreign portfolio investor outflows and a depreciating rupee reflect global economic uncertainties.
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