RBI keeps GDP growth forecast for FY23 unchanged at 7.2%

The Reserve Bank of India (RBI), on 5 August 2022, retained its projection for India’s real GDP growth in 2022-23 at 7.2 per cent. It also kept the quarterly growth projections unchanged at 16.2 per cent for the June 2022 quarter, 6.2 per cent for the September 2022 quarter, 4.1 per cent for the December 2022 quarter and 4 per cent for the March 2023 quarter. The RBI expects rural consumption to benefit from better agricultural prospects and the urban consumption to receive a boost from rebound in contact-intensive services, and an improvement in business and consumer sentiment. It expects investment activity to get support from the government’s capex push, improving bank credit and rising capacity utilisation. The RBI, however, expects protracted geopolitical tensions, the upsurge in global financial market volatility and tightening global financial conditions to cast a negative impact on India’s growth prospects.

References
1. https://rbidocs.rbi.org.in/rdocs/PressRelease/PDFs/PR6507CC1FACC2FE34796A36979DFF3CBF1B8.PDF