RBI Bulletin – September 2023

Summary:

The Reserve Bank of India's September 2023 Bulletin features six speeches, five articles, and current statistics. The articles discuss various economic topics, including the state of the economy, fiscal costs of reverting to the old pension system, the performance of the non-banking financial company (NBFC) sector, inflation and inflation expectations, and the drivers of private consumption in India.

The articles highlight several key points:

India's economy is growing, led by domestic drivers such as private consumption and fixed investment, despite weakening global prospects.
Reverting to the old pension system by Indian states would result in a huge rise in future unfunded pension liabilities and a significant increase in the pension burden.
The NBFC sector showed a double-digit year-on-year growth in its balance sheet and has maintained a strong capital position and adequate buffers.
Inflation and inflation expectations can be explained by statistical distributions, allowing for the measurement of Inflation-at-Risk.
* Private consumption in India is driven by a long-term co-integrating relationship between real private consumption and income, wealth, and other factors.

Overall, the bulletin provides insights into various economic aspects, highlighting the importance of domestic drivers and the need for sustainable fiscal policies.