▪ RBI in its latest Monetary Policy Committee (MPC) hiked rates by 50 bps which was in line with market expectations and retained stance – ‘withdrawal of accommodation’.
• GDP Growth estimates for FY 22-23 have been lowered to 7% from 7.2%. with risk broadly balanced. Economic activities continue to remain resilient, and components of domestic aggregate demand have exceeded their pre-pandemic levels.
• Inflation remains high with core being sticky and pressures from food inflation. Inflation estimates have been unchanged at 6.7% for FY 23 on the assumption of average crude oil (Indian basket) of US$ 100 per barrel.
• Foreign Direct Investment (FDI) improved to US$ 18.9 Billion in April-July 2022 v/s US$13.1 billion a year ago. Forex Reserves stood at US$ 537.5 billion as on 23rd Sep-22.
• India’s external debt to GDP ratio is the lowest among major Emerging Economies.