India’s growth momentum likely to be sustained in 2023-24, says RBI

On the back of sound macroeconomic policies and softer commodity prices, India’s growth momentum is likely to be sustained in 2023-24 in an atmosphere of easing inflationary pressures, said the Reserve Bank‘s annual report released on Tuesday 30 May.

 It, however, added that slowing global growth, protracted geopolitical tensions and a possible upsurge in financial market volatility following new stress events in the global financial system could pose downside risks to growth.

The RBI’s Annual Report for  2022-23, a statutory report of its Central Board of Directors, further said its monetary policy remains focused on withdrawal of accommodation to ensure that inflation progressively aligns with the target, while 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 per cent from the average level of 6.7 per cent recorded last year,” the report said.