Lagatar24 Desk
New Delhi, Nov 18: The Reserve Bank of India (RBI) announced today that it anticipates economic growth to range between 6.1% and 6.3% in the July-September quarter, which, if realised, would put India on a road for 7% growth in 2022–2023.
By the end of November, the data for the second quarter of this fiscal year (July-September) should be available.
“Based on high-frequency indicators, our nowcasting and full information models peg real GDP growth in July-September between 6.1 per cent and 6.3 per cent. If this is realised, India is on course for a growth rate of about 7 per cent in 2022-23,” the RBI said in its November bulletin.
The total amount of rice purchased during this year’s kharif marketing season exceeded previous year’s collection, according to the central bank, although wheat purchases have dramatically decreased.
The increase in rabi seeding compared to last year is good news. According to the RBI, favourable northeast monsoon rainfall and high reservoir water storage levels are also encouraging.
According to RBI, the macroeconomic outlook for the economy is resilient yet vulnerable to significant global challenges, as headline inflation is beginning to ease.
“Urban demand appears robust, rural demand is muted but more recently picking up traction,” said the bulletin.
With capital ratios for the system well above 16% of all risk-weighted assets, the banking system is adequately-capitalized.
However, the impact of inflation on business performance is real. More than 90% of all publicly traded non-financial corporations’ earnings reports indicate that profits momentum will wane in the second quarter of 2022–2023.
Regarding the condition of the rupee, which recently hit an all-time low of 83, the RBI stated that the world’s currencies have entered a negative spiral as a result of the dollar’s rally to repeated highs.
The decline in emerging market currencies is only half that of advanced country currencies, according to a detailed examination, the report added.
