The Reserve Bank of India (RBI) on Friday revised down its GDP growth forecast for the current fiscal year to 7.2 per cent.
Reserve Bank of India Governor Shaktikanta Das, who delivered the first fortnightly policy statement for the 2022-23 fiscal year, said real GDP is expected to grow by 7.2 per cent in the current fiscal year, with growth in the first quarter at 16.2 per cent and 6.2 per cent. percent. percent in the second quarter.
He said that according to the second advanced estimates, real GDP growth was fixed at 8.9 percent for FY22.
In its previous policy announcement in early February, the Reserve Bank of India forecast real GDP growth of 7.8 percent for 2022-23, with the first quarter at 17.2 percent; second quarter by 7 percent; third quarter 4.3 percent; And the fourth quarter, 4.5 percent.
He had said, “In India, real GDP growth of 9.2 per cent for 2021-22 makes it slightly higher than the level of GDP in 2019-20”.
Since its latest policy, several rating agencies have revised their growth forecasts for India downward amid rising commodity prices and new supply chain issues arising from the conflict between Russia and Ukraine. The agencies have also taken into account the downside risks arising from the new lockdown in parts of China led by an increase in COVID-19 cases.
The ICRA revised India’s gross domestic product (GDP) growth forecast to 7.2 per cent for the current 2022-23 fiscal year to 7.2 per cent from a previous forecast of 8 per cent. India’s ratings now expect India’s GDP growth for the current 2022-23 fiscal year at 7-7.2 percent, from its previous estimate of 7.6 percent. Moody’s Investors Service also lowered the country’s GDP growth forecast for 2022 to 9.1 percent, from the 9.5 percent estimated earlier. FICCI expects GDP to grow by 7.4 percent this fiscal year.
Earlier, most experts expected the central bank to cut its GDP growth forecast. Madan Sabnavis, Chief Economist at Bank of Baroda, said, “We expect the MPC to revise the previous forecasts for both growth and inflation for FY23. Growth is likely to be revised downward while inflation is likely to rise by at least 100 basis points in light of advanced conditions.
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