India Economic Growth: The pace of India’s economic development may slow down. The International Monetary Fund has said that the economic growth rate is expected to decline to 6.1 percent in 2023-24. Which can be 6.8 percent in 2022-23. IMF has said that due to the rise in crude oil prices, weak external demand and strict monetary policy, the economic growth rate may decline.
IMF has said that inflation may come down in India in the next two years. However, he has also warned that the dangerous variant of the corona virus may affect trade and economic development. According to the IMF, the war in Ukraine and the sanctions imposed on Russia are affecting India in a number of ways, including rising commodity prices, weak external demand and loss of confidence. The IMF has projected a growth rate of 6 percent in the medium term. It has been said in the report that Indian officials believe that due to the increase in capital expenditure expenditure of the government and private demand, 7 percent of GDP can remain in 2022-23.
The IMF has also warned of the risk of shocks due to increase in crude oil and commodity prices, although it has also praised the efforts to deal with inflation. To curb inflation this year, RBI has increased the repo rate five times. The repo rate has been increased from 4 percent to 6.25 percent. This is the highest level of repo rate after August 2018.
The IMF has predicted an inflation rate of 6.9 percent in 2022-23. And he believes that due to the reduction in the prices of food items and strict monetary policy, the inflation rate may remain between 4 to 6 percent of the tolerance band of RBI till next year. In November 2022, the retail inflation rate has come down to 5.88 percent.