Reserve Bank of India (RBI) Governor Shaktikanta Das speaks during a press conference announcing the monetary policy statement of the central bank in Mumbai on February 8, 2023. , Photo Credit: PTI
The RBI on 8 February cut India’s economic growth forecast to 6.4% in FY24 from 7% in the current fiscal, citing risks from geopolitical tensions and strengthening global financial conditions.
Announcing the bi-monthly monetary policy, Reserve Bank of India Governor Shaktikanta Das said the RBI’s internal survey said companies in the manufacturing, service and infrastructure sectors are optimistic about the business outlook.
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However, geopolitical tensions, tightening global financial conditions and external demands remain risks to the domestic outlook, they said.
“Real GDP growth for 2023-24 is estimated at 6.4%,” Mr Das said.
In 2023-24, growth in the June and September quarters is projected to be 7.8% and 6.2%, respectively. GDP growth in the December and March quarters has been estimated at 6% and 5.8% respectively.
Mr. Das said, “Monetary policy will remain tight and cautious to effectively deal with the challenges facing the economy.”
Many economists and rating agencies have projected India’s real GDP growth to slow down to between 6-6.5% in the next fiscal.