India’s Economic Growth

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About India’s Economic Growth:

The report titled ‘Global Macro Outlook 2023-24: Global economy faces a reckoning over inflation, geopolitics and policy trade-offs’.

The downward revision assumes higher inflation, high interest rates and slowing global growth will dampen economic momentum by more than previously expected.
The weakening of the rupee and high oil prices continue to exert upward pressure on inflation, which has remained above the Reserve Bank of India’s ‘4 per cent -/+ 2 per cent’ target range for much of this year.
Annual headline CPI inflation increased to 7.5 per cent in September, 2022 after dipping below 7 per cent in July.
Wholesale price inflation, however, declined for four straight months, from a peak of 16.6 per cent in May to 10.7 per cent in September.
From May to September, the RBI has raised the repo rate a cumulative 190 bps to 5.9 per cent to contain inflation risks.

This is not the first downward revision of the Indian economy, though all the revisions are for the fiscal year.
The International Monetary Fund (IMF) cut India’s GDP forecast for the current fiscal (FY23) by 60 basis points to 6.8 per cent from 7.4 per cent estimated earlier.
Before that, the World Bank cut the forecast by 1 percentage point to 6.5 per cent, ADB by 50 basis points to 7 per cent, Fitch by 80 basis points to 7 per cent and the RBI by 20 basis points to 7 per cent.
S&P Global and OECD have maintained the forecast at 7.3 per cent and 6.9 per cent, respectively.

Source : The Hindu Businessline