‘Inflation could be lower than 4.7 per cent in May; FY23 GDP growth seen above 7 per cent’

NEW DELHI:  Reserve Bank Governor Shaktikanta Das on Wednesday said retail inflation has moderated, and the next print (May inflation) is expected to be lower than 4.7% that was reported in April.
However, he said there is no room for complacency and the war on inflation will continue.

Consumer inflation in April plunged to an 18-month low from 5.66% in the previous month on account of decline in food prices. “The situation is very dynamic and the war against inflation is not over. We have to remain alert, there is no cause for complacency and we have to see how the El Nino factor will play out,” Das said.

The Governor exuded confidence in the country’s macroeconomic stability on the back of easing inflation, sustainability of gross domestic product (GDP) growth, and manageable current account deficit, record remittances from abroad and fiscal deficit being on consolidation path.

“In the banking sector, gross non-performing assets (GNPAs) at a systematic level was 4.4%…demographic advantage will add to the country’s potential output,” Das stated at an annual conference of the Confederation of Indian industries (CII).

According to him, the gross domestic product (GDP) could come slightly above 7% in FY23. He added that it would not be a surprise if GDP growth rate surpasses 7% as almost all the high-frequency economic indicators monitored by the central bank showed momentum was sustained in the fourth quarter of the last fiscal.

Meanwhile, for FY24 he said the country would register 6.5% growth despite the lower projection of 5.9% made by the International Monetary Fund (IMF). He said the RBI derives its confidence from agriculture sector, services exports, normal monsoon, robust capital and infra spending.