Indian economy is expected to grow at 7% in the current fiscal year, the Reserve Bank of India (RBI) said in its annual report released on Thursday.
The Indian economy expanded at a robust pace in FY24 with real GDP growth accelerating to 7.6% from 7.0% in the previous year – the third successive year of 7% or above growth, RBI said.
The economy showed resilience in FY24 despite persistent headwinds, the central bank added.
According to the RBI report, the Indian economy is well-placed to step up growth trajectory over the next decade in an environment of macroeconomic and financial stability.
“The Indian economy exhibited resilience during 2023-24, in the face of headwinds from protracted geopolitical tensions and volatile global financial markets. The combination of a sustained anti-inflationary monetary policy stance and proactive supply management measures resulted in headline inflation remaining largely within the tolerance band,” the RBI Annual Report for 2023-24 said.
The report noted that the monetary and credit conditions evolved in line with the monetary policy stance and within the commitment to fiscal consolidation, emphasis was laid on capital spending.
External sector sustainability indicators improved during the year, insulating the economy from spillovers from adverse global macro-financial shocks, it added.
