The Reserve Bank of India (RBI), which has projected real GDP growth of 6.5 per cent in 2023-24, said the country’s growth momentum is likely to be sustained in the current fiscal amid easing inflationary pressures.
The central bank cited downside risks such as slowing global growth, protracted geopolitical tensions and a possible upsurge in financial market volatility.
It said the government should sustain structural reforms to improve India’s medium-term growth potential.
The report said that the prospects for the global economy continue to be shadowed by high inflation and the adverse effects of geo-economic fragmentation operating through restrictions on the movements of trade, labour and capital.
However, resilient domestic macroeconomic and financial conditions, expected dividends from past reforms and new growth opportunities from global geo-economic shifts place India in an advantageous position.
The report forecasts 6.5 per cent growth in gross domestic product (GDP) for the fiscal considering softer global commodity and food prices, good rabi crop prospects and sustained buoyancy in contact-intensive services.