RBI MPC: GDP growth for FY23 raised to 7%, FY24 at 6.4%

Shaktikanta Das, Governor of the Reserve Bank of India (RBI), stated on Wednesday that the Monetary Policy Committee (MPC) at its February meeting has put real GDP growth for FY24 at 6.4%, while growth for FY23 has been pegged at 7%. The MPC predicts 7.8% growth in Q1FY24, 6.2% in Q2, 6% in Q3, and 5.8% in Q4.

Shaktikanta Das, Governor of the Reserve Bank of India (RBI), stated on Wednesday that the Monetary Policy Committee (MPC) at its February meeting has put real GDP growth for FY24 at 6.4%, while growth for FY23 has been pegged at 7%.

The MPC predicts 7.8% growth in Q1 FY24, 6.2% in Q2, 6% in Q3, and 5.8% in Q4.

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The MPC forecast 6.8% real GDP growth for 2022–2023 at its December 2022 meeting, with Q3 at 4.4% and Q4 at 4.2%. Real GDP growth was forecast to be 7.1% in Q1 FY24 and 5.9% in Q2.

The Economic Survey 2022–23 forecasts real GDP growth of 6.5 percent in the next fiscal year. The prognosis is roughly equivalent to projections published by multilateral institutions such as the World Bank, IMF, and ADB, as well as the RBI on a local level.

For the fiscal year ending March 2023, the GDP is predicted to increase by 7% in real terms. This follows an 8.7% increase in the prior fiscal year.

“Even after this revision in our growth projection for 2022-23, India will still be among the fastest growing major economies in the world,” Das had said back then.

The upbeat growth forecasts are based on a number of positive factors, including a rebound in private consumption due to increased production activity, higher capital expenditures (Capex), near-universal vaccination coverage, which allows people to spend on contact-based services such as restaurants, hotels, shopping malls, and cinemas, as well as the return of migrant workers to cities to work on construction sites, which has resulted in a significant decrease in housing market inventory.