Don’t be surprised if GDP growth rate surpasses 7% in FY23: RBI Governor Das
NEW DELHI,MAY 24: The gross domestic product (GDP) growth may edge slightly above 7% in FY23, the Reserve Bank of India (RBI) Governor Shaktikanta Das predicted on Wednesday.
Speaking at the annual conference of the Confederation of Indian Industries (CII), Das said that it would not be a surprise if GDP growth rate surpasses 7% as almost all high-frequency indicators monitored by the central bank showed that momentum was sustained in the fourth quarter of the last fiscal.
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Meanwhile, for FY24, he said the country would register a 6.5% growth despite the lower projection of 5.9% made by the International Monetary Fund (IMF).
He said that the RBI derives its confidence from normal monsoon, robust capital and infra spending. However, he also flagged downside risks including global uncertainties and the drag from merchandise exports due to worldwide slowdown.
He added, “On the back of financial sector stability and macro economic stability we are optimistic about domestic growth…. fiscal deficit for the current financial year is on the consolidation path.”
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On inflation, Das stated that though it has moderated but there is no room for complacency. “The situation is very dynamic and the war against inflation is not over. We have to remain alert, there is no cause for complacency and we have to see how the El Nino factor will play out,” Das said.
India’s consumer price inflation (CPI) plunged to an18-month low at 4.7% in April, from 5.66% in the previous month, on account of decline in food prices. The apex bank expects the next print of retail inflation to be below 4.7%.
In addition, Das also said that the central bank will ensure adequate availability of liquidity to meet production requirements of the economy. Besides this, on rupee trade settlement, he said that the country has so far permitted 18 countries. So far, 17 banks have been allowed and 65 vostro accounts have been opened for rupee trade settlement, Das added.
-The New Indian Express
