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'GDP growth rate for 2023 to be 7% or more': RBI Governor Shaktikanta Das on inflation

Shaktikanta Das stated that the retail inflation data for this month, which are scheduled to be released on June 12, "could possibly be lower."

Edited By: Nitin Kumar New Delhi Published on: May 24, 2023 14:51 IST
RBI Governor Shaktikanta Das on inflation & more
Image Source : PTI RBI Governor Shaktikanta Das on inflation & more

The governor of the Reserve Bank of India stated on Wednesday that although inflation has decreased, the central bank cannot be complacent about easing price pressures at this time due to potential weather-related uncertainties.

"The war on inflation is not over; we have to remain alert," Shaktikanta Das said at an event in New Delhi.

"There is no room for complacency. We will have to see how the El Nino factor plays out."

India's yearly retail inflation facilitated to 4.7% in April from 5.66% in the earlier month, as per the information.

Das stated that the retail inflation data for this month, which is scheduled to be released on June 12, "could possibly be lower."

To alleviate inflationary pressures, the rate-setting Monetary Policy Committee has increased the policy repo rate by 250 basis points since May of last year. At its meeting last month, the panel maintained the same repo rate and is expected to pause once more in June.

Das added that El Nino could have an impact on India's economic expansion in addition to posing upside risks to inflation. He stated that there could also be downside risks to growth caused by geopolitical uncertainties and a decrease in merchandise trade as a result of a contraction in global trade.

Regardless of these variables, India's gross domestic product growth could be above 7% for 2022–2023, and such a result, whenever understood, shouldn't really shock anyone, the governor said.

He said that India's GDP is expected to grow by close to 6.5 percent in 2023 and 2024. He also said that the private sector is spending more on capital, and the government is spending more on infrastructure.

The RBI will try to remain judicious and follow up on the chance to guarantee financial stability, staying proactive in foreign exchange management, and will keep on focusing on the stability of the rupee, Das said.

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