RBI Raises India’s GDP Growth For FY23; Q1-Q4 FY24 Growth Numbers

By Malvika Gurung

Investing.com -- The Reserve Bank of India has raised India’s real GDP growth rate for the current financial year (FY23) to 7% from 6.8% estimated at the last MPC policy meet outcome on Dec 7, 2022.

The central bank has projected the country’s GDP growth at 6.4% in the financial year 2023-24.

Further, the quarterly GDP growth forecasts for FY24 have been revised too.

For Q1 FY24 (April-June 2023), the GDP is expected to grow at 7.8% versus 7.1% earlier.
For Q2 (July-September 2023), GDP growth is pegged at 6.2% from 5.9% earlier.
For Q3 (October-December 2023), GDP is expected to grow at 6%, and
For Q4 (January-March 2024), GDP growth is seen at 5.8%.

According to the Economic Survey 2023, India’s real GDP is forecasted to grow by 6.5% in FY24, and Budget 2023 estimated the nominal GDP to grow by 10.5%.

RBI Monetary Policy Committee hiked the repo rate by 25 basis points to 6.5% on Wednesday, while retaining its ‘Withdrawal of Accommodation’ stance in a 4:2 vote.

The central bank has also lowered the country’s retail inflation projection by 20 basis points to 6.5% for FY23 and has set the CPI inflation target for FY24 at 5.3%.