RBI Monetary Policy: GDP Growth Projected At 6.8% For 2022-23

The Reserve Bank of India has projected GDP growth at 6.8% for 2022-23. Going into Q3:2022-23, economic activity continued to gain strength in October. "Urban consumption firmed up further, driven by sustained recovery in discretionary spending, especially on services such as travel, tourism and hospitality. Passenger vehicle sales and domestic air passenger traffic posted robust y-o-y growth. Rural demand is recovering as reflected in the pace of tractor and retail two wheeler sales, with rising farm activity. Investment activity is also gaining traction," the RBI has said in a release.

On the supply side, the country's central bank noted that the agricultural sector remains resilient. "Rabi sowing got off to a strong start. The area sown so far is 6.8 per cent higher than the normal sown area (as on December 2, 2022). The manufacturing PMI rose from 55.3 in October to 55.7 in November. The PMI for the services sector expanded from 55.1 in October to 56.4 in November. Incidentally, the manufacturing and services PMIs for India in November are among the highest in the world. Construction activity is picking up after the end of the south-west monsoon, as indicated by high growth of steel consumption in October," it stated.