Categories: Economy

RBI lowers India’s growth projection to 7.2% from 7.8%, focus now shifts to managing inflation

<p>
<strong>The Reserve Bank of India (RBI) has lowered India's GDP growth rate for the current financial year to 7.2 per cent from an earlier projection of 7.8 per cent.</strong></p>
<p>
Even as the central bank left the key policy rates including the repo rate – the rate at which the banks borrow from the RBI unchanged at 4 per cent, it turned a tad hawkish.</p>
<p>
Amid the surge in prices of commodities, including crude oil, it has clearly signalled shifting focus from growth to managing inflation. RBI projected inflation to be at 5.7 per cent for FY23 a sharp increase from the 4.5 per cent estimated earlier.</p>
<p>
<strong>Also read: <a href="https://www.indianarrative.com/economy-news/india-s-goods-exports-shoot-past-billion-mark-for-first-time-ever-159191.html">India’s goods exports shoot past $400 billion mark for first time ever</a></strong></p>
<p>
“As the horizon was brightening up, escalating geopolitical tensions have cast a shadow on our economic outlook. Although India's direct trade exposure to countries at the epicentre of the conflict is limited, the war could potentially impede the economic recovery through elevated commodity prices and global spillover channels,” RBI governor Shaktikanta Das said.</p>
<p>
Crisil’s chief economist DK Joshi said that while maintaining an accommodative stance, the RBI has signaled calibrated removal of accommodation in this fiscal going forward.</p>
<p>
“Upside risks to inflation show no signs of abating, with crude oil prices persisting above $100 per barrel, and food and metal prices at record highs. Along with increasing cost pressures, we expect the pressure on consumer prices to broaden as well this fiscal,” Joshi said.</p>

IN Bureau

Recent Posts

Outdated infrastructure and transformer failures worsen electricity shortages in PoGB

The region of Pakistan-occupied Gilgit-Baltistan (PoGB) is enduring an escalating electricity crisis that continues to…

2 hours ago

Uyghur educational activist dies in custody of Chinese authorities

An Uyghur intellectual and education advocate, who was detained the night before his daughter's wedding…

5 hours ago

Create data-rich platform to benefit investigation officers: Amit Shah to NCRB

Union Home Minister Amit Shah has instructed the National Crime Records Bureau (NCRB) to develop…

5 hours ago

Brazil:163 workers rescued from “slave” like conditions from Chinese EV company BYD

Brazilian authorities have rescued 163 workers from conditions similar to "slavery" at a construction site…

6 hours ago

Water crisis worsens in PoJK as natural springs dry up

The water crisis in Pakistan-occupied Jammu and Kashmir (PoJK) has reached alarming levels as natural…

7 hours ago

UK House of Lords members express concern over China’s human rights violations in Tibet

On the 40th anniversary of the Sino-British Joint Declaration, members of the UK House of…

7 hours ago