India’s GDP is expected to grow at 7.8 per cent in FY2022-23, said RBI Governor Shaktikanta Das on Thursday.
In a statement after the Monetary Policy Committee’s bi-monthly meet, Das said the real GDP growth is projected at 17.2 per cent in Q1FY23, at 7 per cent in Q2; at 4.3 per cent in Q3 and Q4 at 4.5 per cent.
“In India, real GDP growth at 9.2 per cent for 2021-22 takes it modestly above the level of GDP in 2019-20. Private consumption, the mainstay of domestic demand, continues to trail its pre-pandemic level,” he said.
“The persistent increase in international commodity prices, surge in volatility of global financial markets and global supply bottlenecks can exacerbate risks to the outlook.”
According to Das, going forward, government’s thrust on capital expenditure and exports are expected to enhance productive capacity and strengthen aggregate demand.
“This would also crowd in private investment. The conducive financial conditions engendered by the RBI’s policy actions will provide impetus to investment activity.”
Besides, he cited that surveys done by the RBI reveal that capacity utilisation is rising, and the outlook on business and consumer confidence remain in optimistic territory.
Furthermore, he said that the prospects for agriculture have brightened on “good progress” of winter crop sowing.
In conclusion, Das said: “Overall, there is some loss of the momentum of near-term growth while global factors are turning adverse.”
“Looking ahead, domestic growth drivers are gradually improving.”
On Thursday, RBI retained its key short-term lending rates during the sixth and final monetary policy review of FY22.
Further, the growth-oriented accommodative stance was retained to give a push to economic activity.
In addition, the RBI’s Monetary Policy Committee (MPC) maintained the repo rate, or short-term lending rate, for commercial banks, at 4 per cent.