Accelerated Growth: Rbi Maintains India’s Fy22 Gdp Growth Projection Of 9.5%

Accelerated Growth: RBI maintains India’s FY22 GDP growth projection of 9.5%

Mumbai, Dec 8, 2008 : India’s Reserve Bank of India (RBI), on Wednesday maintained its GDP growth projection for the current fiscal year at 9.5%.This was due to an accelerated economic recovery and pent-up demand.
Accordingly, GDP growth is expected to be 6.6% in Q3, 6.3% in Q4, 17.2 percent in Q1FY23, and 7.8 percent in Q2FY23.

 Accelerated Growth: Rbi Maintains India’s Fy22 Gdp Growth Projection Of 9.5%-TeluguStop.com

After the MPC’s bimonthly meeting, Shaktikanta Das, Governor of RBI, stated: “Incoming data indicates that consumption demand is improving, with pent up demand getting strengthened by the festive season.” Rural demand is showing resilience and farm employment are increasing with the strong performance of agriculture and allied activities, aided by a strong start for rabi sowing.

“Other indicators such as railway freight traffic, port cargo and GST receipts, toll collection, petroleum consumption, and air passenger traffic also showed a rise in October or November.”

He also stated that recent reductions of excise duty on petrol and diesel and state VAT should help to increase purchasing power and support consumption demand.

Das stated that government consumption has been increasing since August, which supports aggregate demand.

He also stated that the Centre’s relaxation by states of additional market borrowings equal to 0.5% of gross state product (GSDP), subject to certain capex-related milestones, and the decision to frontload tax devolution are likely bolster capital outlays.

He said that the Centre’s focus upon ‘capex” should be crowded out of private investment, which has remained a prolonged state with muted activity.

“Overall, the recovery that was interrupted by the second pandemic wave is gaining traction but it isn’t strong enough to sustain itself and be durable.This highlights the importance of continuing policy support.”

“Downside risks to our outlook have increased with the emergence Omicron and renewed surges in Covid-19 infections within a number of countries.”

rv/dpb
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