Due to normal monsoon, reduced inflationary pressure and the possibility of pick-up in manufacturing and service sector activities, the Reserve Bank of India (RBI) has revised the estimate of Gross Domestic Product (GDP) growth rate for the current financial year 2024-25 to seven percent. But it has been maintained. This is lower than the estimate of 7.6 percent for 2023-24. In its February monetary policy, the RBI had estimated the GDP growth rate to be seven percent for the financial year starting April 1.
Global situation becomes a challenge
Announcing the first monetary policy of the current financial year, RBI Governor Shaktikanta Das said that private consumption will increase due to strength in rural demand, improvement in employment and unorganized sector situation, reduction in inflationary pressure and picking up pace of manufacturing and service sector activities. . However, along with this he said that geopolitical tensions and disruption in global trade routes may cause some problems. He said that due to improvement in the private investment cycle, prospects for investment activities have improved. Apart from this, increase in capital expenditure of the government, strong balance sheet of banks and companies, increase in capacity utilization and increase in business confidence will also strengthen the economy.
Total flow was Rs 31.2 lakh crore
Das said the total inflow to the commercial sector from banks and other sources in 2023-24 is Rs 31.2 lakh crore. It was Rs 26.4 lakh crore last year. He said that external demand also saw improvement in February and exports increased by more than 10 percent. However, due to increase in imports, trade deficit also increased. Prime Minister Narendra Modi had also said earlier this week that the Reserve Bank should give “top priority” to growth and focus on confidence and stability.
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