India’s growth momentum likely to be sustained in 2023-24, says RBI

MUMBAI: On the back of sound macroeconomic policies and softer commodity prices, India’s growth momentumislikelytobesustainedin 2023-24 in an atmosphere of easing inflationary pressures, said the Reserve Bank‘s annual report released on Tuesday. It, however, added that slowing global growth, protractedgeopoliticaltensionsanda possible upsurge in financial market volatility following new stress events in the global financial system could posedownsideriskstogrowth.

“On the back of sound macroeconomic policies, softer commodity prices, a robust financial sector, a healthy corporate sector, continued fiscal policy thrust on quality of government expenditure, and new growth opportunities stemming from global realignment of supply chains, India’s growth momentumislikelytobesustainedin 2023-24 in an atmosphere of easing inflationarypressures,”itsaid.

The RBI’s Annual Report for 2022-23, a statutory report of its

Central Board of Directors, further said its monetary policy remains focused on withdrawal of accommodation to ensure that inflationprogressivelyalignswith the target, while supporting growth. “With a stable exchange rate and a normalmonsoon—unlessanElNino event strikes — the inflation trajectory is expected to move down over 2023-24, with headline inflation edging down to 5.2 per cent from the average level of 6.7 per cent recorded lastyear,”thereportsaid.