RBI retains growth projection at 7.2 pc for FY23

The Reserve Bank of India on Wednesday retained its growth projection at 7.2 %  for the current fiscal on the back of improvement in urban demand and gradual recovery in rural India.

Unveiling the third monetary policy for the current fiscal, RBI Governor Shaktikanta Das said the Indian economy remained resilient, and the central bank will continue to support growth.

The RBI expects growth in the first quarter of the current fiscal at 16.2 %, which will taper to 4 % by the fourth quarter.

He, however, cautioned that there are risks from the ongoing Russia-Ukraine war.

The central bank earlier in April slashed the GDP growth projection for 2022-23 to 7.2 % from its earlier forecast of 7.8 %.

On Tuesday, the World Bank cut India’s economic growth forecast for the current fiscal to 7.5 % as rising inflation, supply chain disruptions, and geopolitical tensions taper recovery.

It was the second time that the World Bank has revised its GDP growth forecast for India in the current fiscal 2022-23 (April 2022 to March 2023). In April, it trimmed the forecast from 8.7 % to 8 % and now it is projected at 7.5 %.

The GDP growth compares to an 8.7 % expansion in the previous 2021-22 fiscal.
India’s economy grew by 4.1 % in the January-March quarter of 2021-22.