India’s GDP Growth Projection Retained At 7.2% For FY 2022-23: RBI Governor

Shaktikanta Das, Governor of the Reserve Bank of India, indicated on Friday that the real GDP growth prediction for the fiscal year 2022–2023 is maintained at 7.2 percent.

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The real GDP growth prediction for the fiscal year 2022–2023 is kept at 7.2 percent, with Q1–16.2 percent, Q2–6.2 percent, Q3–4.1 percent, and Q4–4 percent with risks largely balanced, according to a statement from the Reserve Bank of India on Friday. The rate-setting body of the RBI, the Monetary Policy Committee (MPC), convened on August 3 for a three-day meeting to discuss the state of the economy.

At a press conference after the three-day meeting, RBI Governor Shaktikanta Das said that the real GDP growth for the first quarter of Fiscal Year 2023–2024 is anticipated to be 6.7 percent.

The real GDP growth projection for 2022-23 is retained at 7.2% with Q1- 16.2%, Q2-  6.2%, Q3 -4.1%  and Q4- 4% with risks broadly balanced. The real GDP growth for Q1 2023-24 is projected at 6.7%”, said the RBI Governor

He further added, “Inflation is projected at 6.7% in 2022-23, Q2 at 7.1 per cent, Q3 at 6.4 per cent, Q4 at 5.8 per cent; CPI inflation for Q1- 2023-24 is projected at 5%”.

In its monetary policy announcement, the RBI Governor also stated that the MPC had unanimously decided to raise the repo rate by 50 basis points, to 5.4 percent, effective immediately. The committee decided to concentrate on reducing accommodations in order to stimulate growth while maintaining target inflation. The MSF rate and bank rate would be adjusted to 5.65 percent, while the SDF rate would remain at 5.15 percent.

RBI Governor Shaktikanta Das said the Indian Rupee has performed far better than several reserve currencies or Asian currencies. He added “depreciation of rupee is due to strength of the dollar, rather than any weakness in India’s macro fundamentals. Remain focused on maintaining the stability of the rupee. Despite the drawdown of foreign exchange reserves to limit rupee volatility, India’s reserves remain the fourth largest globally”.

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