Mumbai/New Delhi, May 30: India’s growth momentum is likely to be sustained in FY2023-24 on the back of strong macroeconomic policies and softening commodity prices, according to the Reserve Bank of India (RBI) in its annual report.
In its report released on Tuesday, the RBI also expects reduction in inflation in the current financial year 2023-24. However, the report noted that there could be downside risks to growth if financial market volatility is triggered by slower global growth, prolonged geopolitical tensions and stress in the global financial system.
Due to strong macroeconomic policies, softening commodity prices, strong financial sector, healthy corporate sector, continued emphasis on the quality of government expenditure, restructuring of global supply chains and moderation in inflation, the pace of India’s economic growth rate is expected to be maintained in the financial year 2023-24.
According to the report, with a stable exchange rate and a normal monsoon, inflation is expected to go down further in FY 2023-24 if there is no El Nino event.
In the RBI report, the wholesale inflation rate has been estimated to come down to less than 5.2 percent, which was 6.7 percent in the last financial year 2022-23. The Annual Report of RBI is a statutory report of its Central Board of Directors.
