RBI maintains India’s GDP growth at 7.2% for FY23

On Wednesday, June 8, the Reserve Bank of India (RBI) retained India’s growth at 7.2% for the fiscal year 2023. The country’s economic growth had slowed down in the last quarter due to a global supply shortage.

Yesterday, the World Bank had cut India’s economic growth for FY22-23 to 7.5%. The reason behind this move was the rising inflation & geopolitical tensions. The Russia-Ukraine war has disrupted the global supply chain, several economies have been affected by this.

Experts have stated that the outlook remains cloudy for the country as several negative factors are working in unison. “The outlook remains clouded with uncertainties especially with escalating crude oil prices. Further, weak labour markets, limited ability on additional fiscal spends, reduced corporate margins due to rising input prices and weaker global demand remain a concern,” said Upasna Bhardwaj, Senior Economist at Kotak Mahindra Bank.