On Thursday, the Reserve Bank of India (RBI) announced that it would maintain its GDP growth prediction for the current fiscal year at 6.5 percent. The RBI also said that “domestic demand conditions remain supportive of growth” and that “demand in rural areas is on the revival path.”
The RBI said that greater rabi agricultural output in FY2022-23, a projected normal monsoon, and continued buoyancy in the service sector should underpin private consumption and the overall economic activity in the current year when announcing the second bi-monthly monetary policy for the current fiscal year.
The Monetary Policy Statement that the central bank released said that the government’s emphasis on capital spending, a reduction in commodity prices, and solid credit expansion are all factors that are likely to foster investment activity.
“Weak external demand, geo-economic fragmentation, and protracted geopolitical tensions, however, pose risks to the outlook,” the MPC added.
The Governor of the RBI, Shaktikanta Das, said that “taking all of these factors into consideration, real GDP growth for 2023–24 is projected at 6.5 percent, with Q1 at 8 percent, Q2 at 6.5 percent, Q3 at 6 percent, and Q4 at 5.7 percent, with risks evenly balanced.”
In April, the MPC of the RBI made a very small adjustment to the GDP growth prediction for FY24, bringing it up to 6.5 percent from its previous expectation of 6.4 percent.
The Reserve Bank of India (RBI) has stated that its monetary policy committee has reached a consensus and will maintain the current policy repo rate of 6.50 percent.
Additionally, the forecast for annual inflation by the central bank was revised downward, going from 5.2 percent to 5.1 percent. Das said that the headline inflation rate is now higher than the objective of 4% and that this is anticipated to be the case for the remainder of the year.
%20announced%20that%20it%20would%20maintain%20its%20GDP%20growth%20prediction%20for%20the%20current%20fiscal%20year%20at%206.5%20percent.){kind=link}