Reserve Bank of India.
| Photo Credit: Nagara Gopal
On the again of sound macroeconomic insurance policies and softer commodity costs, India’s growth momentum is likely to be sustained in 2023-24 in an environment of easing inflationary pressures, stated the Reserve Bank’s annual report launched on May 30.
It, nonetheless, added that slowing international growth, protracted geopolitical tensions and a attainable upsurge in monetary market volatility following new stress occasions in the worldwide monetary system may pose draw back dangers to growth.
Also learn: RBI projects economic growth at 6.4% for next fiscal
“On the back of sound macroeconomic policies, softer commodity prices, a robust financial sector, a healthy corporate sector, continued fiscal policy thrust on quality of government expenditure, and new growth opportunities stemming from global realignment of supply chains, India’s growth momentum is likely to be sustained in 2023-24 in an atmosphere of easing inflationary pressures,” it stated.
The RBI’s Annual Report for 2022-23, a statutory report of its Central Board of Directors, additional stated its financial coverage stays centered on withdrawal of lodging to be sure that inflation progressively aligns with the goal, whereas supporting growth.
“With a stable exchange rate and a normal monsoon – unless an El Nino event strikes – the inflation trajectory is expected to move down over 2023-24, with headline inflation edging down to 5.2% from the average level of 6.7% recorded last year,” the report stated.
In the exterior sector, it stated the present account deficit (CAD) is anticipated to stay average, drawing energy from sturdy providers exports and the salubrious impression of moderation in commodity costs of imports.
“With global uncertainties persisting, foreign portfolio investment (FPI) flows may remain volatile,” the RBI stated.
During the present fiscal, the RBI stated it goals at increasing the continued pilots in the CBDC (central financial institution digital forex) -Retail and CBDC-Wholesale by incorporating numerous use instances and options.
The pilot in CBDC-Retail is proposed to be expanded to extra areas and to embody extra taking part banks, it added.