The Reserve Bank of India's Monetary Policy Committee (MPC) on Friday that it expects India's GDP growth for FY24 to come in at 6.5%, in line with its previous predictions.
"Headwinds from geopolitical tensions and geoeconomic fragmentation, volatility in global financial markets, global economic slowdown, and uneven monsoon, however, pose risks to the outlook," RBI Governor Shaktikanta Das said during his address post the meet.
"Taking all these factors into consideration, real GDP growth for 2023-24 is projected at 6.5 per cent with Q2 at 6.5 per cent; Q3 at 6.0 per cent; and Q4 at 5.7 per cent. The risks are evenly balanced. Real GDP growth for Q1:2024-25 is projected at 6.6 per cent," he said.
India's GDP grew 7.8% in the April-June quarter of FY 24, compared to 13.1% growth rate witnessed in Q1 of FY 2022-23.
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The World Bank, earlier this week, kept India's growth forecast unchanged at 6.3% for FY24, driven by investment, while sharply revising its inflation projection to 5.9% from 5.2%.
Global ratings and research agency Moody’s Investor Service, in September, raised India’s growth forecast to 6.7% in 2023 from 5.5% projected earlier.
In the August meet of the policy committee, the GDP forecast for FY24 was retained at 6.5% as announced in June, which has been retained this time as well.
In the August meet of the policy committee, the GDP forecast for FY24 was retained at 6.5% as announced in June, which has been retained this time as well.
In its previous meeting, the rate-setting panel stressed the need to monitor the inflation situation closely given the risk of El Nino and uneven rainfall, a stance that has been reiterated at this month's meet as well.
Source Name : Economic Times