The RBI’s latest ‘State of the Economy’ report highlights India’s potential economic rebound, fueled by rising domestic demand and strong agricultural prospects. Released ahead of the Budget, it emphasizes rekindling consumer demand and investment to stimulate growth, particularly in infrastructure and green energy sectors. The report indicates a positive trend in high-frequency economic indicators for late 2024-25 and cautions about persistent food inflation. It inspires optimism for public capital expenditure and forecasts significant growth in renewable energy capacities, projecting India to achieve a greener, more stable economic environment by 2025.