Reserve Bank of India Governor Shaktikanta Das said that the economy is projected to grow at 6.8 per cent in the current financial year 2022-23, with Q3 at 4.4 per cent and Q4 at 4.2 per cent. Real GDP growth is projected at 7.1 per cent for Q1:2023-24 and at 5.9 per cent for Q2.
The RBI Governor Shakthikanth Das wants us to take note that even after this revision in our growth projection for 2022-23, India will still be among the fastest growing major economies in the world. As regards inflation, the Governor stated that headline inflation is projected at 6.7 per cent in 2022-23.
The Governor summarized the findings thus. GDP growth in India remains resilient and inflation is expected to moderate; but the battle against inflation is not over.
The Governor spoke of the appreciation of the US dollar this year, which precipitated large scale depreciation of all major global currencies including the Indian rupee (INR). He informed that through this episode of US dollar appreciation, the INR’s movements have been the least disruptive, relative to peers.
In fact, the INR has appreciated against all other major currencies except a few, he adds. The Governor notes that the story of the INR has been one of India’s resilience and stability.
The Governor informed that the size of forex reserves is comfortable and has also increased. It has gone up from US$ 524.5 billion on October 21, 2022 to US$ 561.2 billion as on December 2, 2022. He also noted that India’s external debt ratios are low by international standards.
He said that India’s G20 presidency provides us a historic opportunity to play a bigger role in the international arena. The theme of our Presidency “Vasudhaiva Kutumbakam” reflects our vision of global cooperation for universal welfare.
The Governor said that we must remain optimistic and derive inspiration from the following words of Gandhiji: “Let no one think that it is impossible because it is difficult. It is the highest goal, and it is no wonder that the highest effort should be necessary to attain it.”
