According to the central bank’s (RBI) annual report, which was recently published, India’s growth momentum is anticipated to continue in fiscal 2023–24 (FY24) in an environment of easing inflationary pressures amid sound macroeconomic policies, softer commodity prices, a healthy corporate sector, continued fiscal policy thrust on quality of government expenditure, and new growth opportunities resulting from global realignment of supply chains.
According to the report, downside risks to growth include slowing global GDP, lingering geopolitical tensions, and a potential increase in financial market volatility as a result of fresh stress events in the world financial system.
According to the text, RBI’s monetary policy is concentrated on removing accommodation to guarantee that inflation gradually converges with the target while fostering growth.
Unless an El Nio, there will be a stable exchange rate and a typical monsoon. In a climate of lessening inflationary pressures, alongside strong macroeconomic policies, softer commodity prices, a healthy corporate sector, and ongoing fiscal policy push on quality of government, India’s growth momentum is anticipated to continue in fiscal 2023–24 (FY24). Nino event hits — the inflation trajectory is anticipated to change over 2023–24, with headline inflation sliding down to 5.2% from the average level of 6.7% reported last year, according to the analysis.
Strong service exports and the positive effects of modest commodity prices on imports should help the current account deficit to remain manageable. Foreign portfolio investment (FPI) flows may continue to be unpredictable as long as global concerns exist, the RBI warned.
The ongoing experimental programmes at the central bank are intended to be expanded. digital currency—both in retail and wholesale—during this fiscal by incorporating various use cases and features, the annual report