Business & Economy

India raises GDP growth forecast to 7%, holds lending rate

New Delhi, Dec 8 (EFE).- India’s central bank Friday raised the gross domestic product (GDP) growth forecast for the current financial year to 7 percent, compared to 6.5 percent projected earlier.

Reserve Bank of India (RBI) Governor Shaktikanta Das said GDP posted a robust growth of 7.6 percent in the second quarter of the financial year, from April 2023 to March 2024, driven by “investment and government consumption.”

In view of this forecast, the central bank’s Monetary Policy Committee (MPC) decided to maintain interest rates at 6.5 percent for the sixth consecutive time to ensure that inflation adjusts progressively while supporting growth.

The governor said the inflation fell to 4.9 percent in October, compared to the 7.4 percent recorded in July, and projected a 5.4 inflation for the current fiscal year.

Das said the Indian economy “presents a picture of resilience and momentum” despite the global economic volatility due to disruptions in supply chains and conflicts in Ukraine and the Middle East.

In 2022, India was ranked the fifth largest economy in the world by the International Monetary Fund (IMF) after the United States, China, Japan, and Germany.

“Our second quarter growth is the highest in the world and we continue to maintain the momentum of being the fastest growing economy,” said Finance Minister Nirmala Sitharaman on Thursday. EFE

daa/up/ssk

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