RBI: Reforms, Productivity Crucial for India's High Growth Path

• RBI's December 2025 Bulletin stresses structural reforms, productivity, and macroeconomic stability for India's sustained high growth.
• Indian economy shows resilience with 8.2% GDP growth in Q2 FY25, driven by private consumption and fixed investment.
• Urban and rural demand strengthening, supported by factors like vehicle sales, rabi crop outlook, and digital payments.
• MPC cut repo rate by 25 bps to 5.25% in December, citing benign inflation outlook to support growth.
• External sector resilient with narrowed trade deficit and moderated current account deficit, despite global volatility.

Why It Matters: India needs continued reforms and productivity boosts to maintain its strong economic growth trajectory.