The Indian economy continues to sustain the momentum achieved in the first half of 2023-24 and expectations of a fresh round of capex by the corporate sector is likely to fuel the next leg of growth, said the Reserve Bank of India (RBI) in its February Bulletin released on Tuesday.

"The likelihood of the global economy exhibiting stronger than expected growth in 2024 has brightened in recent months, with risks broadly balanced," said an article on 'State of the Economy' published in the bulletin.

It further said the Indian economy continues to sustain the momentum achieved in the first half of 2023-24, going by high frequency indicators.

"Expectations of a fresh round of capex by the corporate sector is likely to fuel the next leg of growth," said the article authored by a team led by RBI Deputy Governor Michael Debabrata Patra.

The central bank has projected the GDP growth for 2024-25 at 7%.

On inflation, it said consumer price inflation came off its November-December spikes in its January 2024 reading, while core inflation is at its lowest since October 2019 and non-food wholesale price inflation remains in deflation. 

The Reserve Bank has projected the retail inflation at 4.5% for 2024-25 financial year.

It, however, said the views expressed in the bulletin article are of the authors and do not represent the views of the RBI.