India GDP: Increased GDP growth rate, any important decisions taken in RBI meeting? – mssewb.org

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GDP of India: At the end of the meeting of the Reserve Bank of India’s Monetary Policy Committee, several decisions came forward. Wednesday was the last day of this meeting which started from Monday. RBI Governor Shaktikanta Das clarified several issues at the end of the meeting. On this day, he said that in the current financial year (2022-23), the real GDP growth of the country may be up to 7 percent. The previous estimate was 6.8 percent. Talking about inflation today, the RBI Governor said that global financial challenges have increased in the last 3 years. But the strength of the Indian economy remains intact.

However, real GDP growth is forecast at 6.4 percent for the financial year 2023-24. The growth in the first quarter is estimated at 7.8 percent, in the second quarter the growth is estimated at 6.2 percent, in the third quarter the growth is estimated at 6 percent and in the last quarter the growth is estimated at 5.8 percent.

Besides, the RBI Governor said that the world is facing financial challenges, but India’s momentum is upward. He also expressed his satisfaction that the speed of the country is correct after overcoming all obstacles. Apart from this, Shaktikanta Das said that the rural demand can be improved due to the large amount of Rabi crops. However, the RBI governor said the country’s monetary inflation rate is expected to be 5.3 percent in FY24.

Repo Rate Hike

Besides, the repo rate has also been increased as a big decision on this day. Shaktikanta Das announced a 25 basis point rate hike. As a result RBI’s new repo rate is 6.50 percent. Due to the increase in the repo rate, the cost of the common people is going to increase. People who have taken loans to buy a car and house have a 99 percent risk of increasing their EMI cost. SDF rate rose to 6.25 percent and MSF to 6.75 percent after RBI repo rate hike.

Shaktikanta Das also made a proposal. It is proposed to allow all foreign travelers in India to use UPI for their merchant payments (P2M). On the other hand, he also proposed to start a new pilot project. A QR code based coin vending machine will be introduced in 12 cities, RBI Governor said.

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