📷 Image Credits: The Hindu
The Reserve Bank of India recently released its Annual Report for the fiscal year 2023-24, highlighting key projections and challenges for the Indian economy. The report indicated that the Indian economy is expected to grow at a rate of 7% in the current fiscal year, starting from April. This growth is seen as a result of robust investment demand, prudent policies, and supportive global conditions. The real GDP growth for the upcoming fiscal year, 2024-25, is projected at 7.0%, with risks evenly balanced. The Reserve Bank emphasized the importance of solid investment demand, supported by healthy balance sheets of banks and corporates, as well as the government’s focus on capital expenditure and monetary, regulatory, and fiscal policies. The report also acknowledged the challenges facing the Indian economy, including geopolitical tensions, global financial market volatility, and climate shocks. Additionally, the rapid adoption of AI/ML technologies poses a challenge that the economy will have to navigate. The Reserve Bank remains optimistic about the Indian economy’s outlook, with expectations of sustained growth over the next decade in an environment of macroeconomic and financial stability. The report also highlighted the role of external sector strength and foreign exchange reserves in insulating the domestic economy from global spillovers. Overall, the Reserve Bank’s annual report provides valuable insights into the current state of the Indian economy and its trajectory for the upcoming fiscal year.
