Reserve Bank of India (RBI) Governor Shaktikanta Das speaks during a press conference announcing the central bank’s monetary policy statement, in Mumbai on February 8, 2023.
| Photo Credit: PTI
The RBI on February 8 projected India’s economic growth to slow down to 6.4% in FY24 from 7% in the current fiscal, citing risks from geo-political tension and tightening global financial condition.
Announcing the bi-monthly monetary policy, Reserve Bank of India Governor Shaktikanta Das said the RBI’s internal survey says manufacturing, services and infrastructure sector firms are optimistic of the business outlook.
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However, protracted geo-political tension, tightening global financial conditions and external demands continue as downside risks to the domestic outlook, he noted.
“The real GDP growth for 2023-24 is projected at 6.4%,” Mr. Das said.
In 2023-24, the growth in the June and September quarter is projected at 7.8% and 6.2%, respectively. In the December and March quarter, the GDP growth is estimated at 6% and 5.8%, respectively.
“Monetary policy will continue to be agile and alert to effectively address challenges to the economy,” Mr. Das said.
Several economists and rating agencies have projected India’s real GDP growth to slow to between 6-6.5% in the next fiscal.