Reserve Bank of India (RBI) Governor Shaktikanta Das in the Monetary Policy Committee meeting announcements stated that GDP growth for 2023-24 is projected at 6.5 percent.
New Delhi: Reserve Bank of India (RBI) Governor Shaktikanta Das, after the Monetary Policy Committee meeting, stated on Friday that the Gross Domestic Product (GDP) growth for the year 2023-24 is projected at 6.5 percent, adding that the risks are evenly balanced. Notably, he had projected growth for the same year at 6.5 percent in the previous two policies in June and April.
“Taking all factors into consideration, Real GDP Growth for the current financial year 2023-24 is projected at 6.5%…The risks are evenly balanced. Real GDP Growth for the first quarter of next financial year 2024-25 is projected at 6.6%,” said Das.
The RBI Governor asserted that first quarter will grow at 8 percent, the second quarter of the year at 6.5 percent, Q3 at 6 percent and Q4 at 5.7 percent. It is worth noting that in previous policy in June this year he pegged the growth for first quarter at 8 percent. Q2 at 6.5 percent, Q3 at 6 percent and Q4 at 5.7 percent. For Q1 of the next financial year or 2024-25, growth is projected at 6.6 per cent.
The Governor mentioned that the Indian economy has maintained a steady growth rate, making it the fifth-largest economy globally and contributing approximately 15 percent to global growth. He also noted that the Indian economy has displayed increased strength and stability and has made significant strides in controlling inflation. Regarding the global economy, RBI Governor Das pointed out that India is uniquely positioned to capitalize on its ongoing transformative shift.
“Global economy continues to face daunting challenges of inflation, geopolitical uncertainty and extreme weather conditions…India is expected to withstand external headwinds on the economic growth front,” he added.
He further added that the upcoming festival season is also expected to provide support to private consumption and investment activities.
Meanwhile, the Central Bank kept the repo rate unchanged at 6.50 percent, maintaining the withdrawal of accommodation stance. However, CPI inflation forecast increased for FY24 to 5.4 percent from 5.1 per cent.