Indian economy continues to display resilience, says Panda
India’s goods and services exports will touch US$900 billion in 2023-24, a growth of about 15% growth, which is a huge achievement looking at the current global challenges, says FIEO President Dr A Sakthivel as he welcomed RBI decision on 8 June to maintain Repo Rates.
The Reserve Bank of India (RBI) has kept its policy rates unchanged at 6.5% to further provide growth momentum to the economy and contain inflation.
“The decision to keep policy rate unchanged will further give boost to growth through increasing investments,” he noted.
While most Central Banks have given more weightage to inflation as compared to growth, RBI stroke a nice balance between the two, giving primacy to growth, thereby maintaining the GDP growth forecast for FY24 at 6.5%.
He also expected increasing investment to lead to further production and easing of supply, thus reducing inflation in coming months.
FICCI President Subhrakant Panda also welcomed the RBI decision to keep Repo rates unchanged, saying, “The Indian economy continues to display resilience and growth potential in a challenging global environment.”
The economy shows that growth momentum will continue in 2023-24 despite headwinds; there is also a clear moderation in the inflation trajectory, although risks remain on account of uncertainty posed by El Nino and geopolitical developments.
“A status quo in policy rates was largely expected and, by keeping the repo rate unchanged and maintaining the stance of withdrawal of accommodation, RBI is keeping a watchful eye on inflation while supporting growth,” he said in a release on 8 June 2023.
“FICCI expects the impact of monetary policy interventions till date to pave the way for reversal of the rate hike cycle in due course,” he said. Fiinews.com
