RBI lowers GDP growth to 5.7% August 3rd, 2013 The GDP growth for the current fiscal has been fixed lower by the Reserve Bank of India’s professional forecaster’s survey. From the earlier estimation of 6% it has now been fixed as 5.7%. Forecast by RBI: • The growth is expected to rise further to 6.5% in 2014-15. • The bank credit growth forecast for 2013-14 has also been revised downward to 15 % from 16 %. • For money supply has been revised downwards in 2013-14 to 13% from 14.6 %. • Agricultural prospects for 2013-14 are encouraging given the good monsoon so far. • Revival in mining and manufacturing will take some more time but some improvement can be seen. Inflation and Risk: • RBI revised the inflation target to 5.3 % from the earlier target of 6.5 %. • Average WPI inflation is expected to moderate to 5.3 % during 2013-14. • The rupee depreciation of about 9 % in Q1 of 2013-14 is likely to put pressure on domestic inflation. • Fuel under-recoveries have raised sharply due to the exchange rate depreciation and domestic price rigidities. • Businesses have weakened but signs are there that the downturn can be contained.
Posted on: Tue, 18 Feb 2014 17:27:50 +0000
Trending Topics
Recently Viewed Topics
© 2015