RBI trims GDP growth forecast to 7.2% amid geopolitical crisis

The Reserve Bank of India (RBI) has now projected India’s gross domestic product (GDP) surge at 7.2% for the financial year 2022-23.

The Reserve Bank of India (RBI) has now projected India’s gross domestic product (GDP) surge at 7.2% for the financial year 2022-23. These estimations are projected based on early onset statistics of 7.8%. These have now been announced by RBI Governor Shaktikanta Das.

Russia-Ukraine War to affect economy?

The ongoing crisis in Europe has been tagged as a possible attempt of World War III. Russia has been deploying military teams to invade and occupy disputed lands since 2014 conflict. After heavy economic sanctions from NATO members and rest of the world. Russia has blocked its major oil supply surging oil prices. In turn this has induced a price pushing of commodities. This has therefore resulted in rising inflationary trends for important natural resources.

The government has therefore mandated the central bank to keep the inflation strictly at 4%. Lest, with an upper and lower tolerance level of 2% only.

Indian Economy for FY-23

With global crude oil prices escalating with Euro-Asian civil war. RBI has made it very evident that despite global conflicts, the Indian economy will not take a hit. India maintains its stance on acknowledging and providing aid to Ukrainian refugees. Meanwhile, ensuring Russian cooperation does not harm Indian citizens or the economy.

It seems RBI has taken an effective stance to maintain inflation and cash reserves to secure sustainable economic growth.

Stay tuned for more updates on policies that affect all of us.

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