India’s GDP is expected to grow at 7.8 percent in FY2022-23, RBI Governor Shaktikanta Das said on Thursday.
Speaking after the Monetary Policy Committee’s bi-monthly meet, Das said the real GDP growth is projected at 17.2 percent in Q1FY23, at 7 percent in Q2; at 4.3 percent in Q3 and Q4 at 4.5 percent.
“In India, real GDP growth at 9.2 percent for 2021-22 takes it modestly above the level of GDP in 2019-20. Private consumption, the mainstay of domestic demand, continues to trail its pre-pandemic level,” he said.
“The persistent increase in international commodity prices, surge in the volatility of global financial markets and global supply bottlenecks can exacerbate risks to the outlook.”
The government’s thrust on capital expenditure and exports are expected to enhance productive capacity and strengthen aggregate demand, he said.
“This would also crowd in private investment. The conducive financial conditions engendered by the RBI’s policy actions will provide impetus to investment activity.”
Besides, he cited that surveys done by the RBI reveal that capacity utilization is rising, and the outlook on business and consumer confidence remains in optimistic territory.
The prospects for agriculture have brightened on “good progress” of winter crop sowing, he added.
“Overall, there is some loss of the momentum of near-term growth while global factors are turning adverse. Looking ahead, domestic growth drivers are gradually improving,” he concluded.