The Monetary Policy Committee (MPC) of the RBI met in April and resolved  to hold the repo rate at 6.5% while maintaining its emphasis on the withdrawal of accommodation to control inflation.

According to projections made public on February 28, 2023 by the National Statistical Office (NSO), India’s real gross domestic product (GDP) growth is placed at 7.0% in 2022–2023

In Q4, economic activity remained robust. Production of rabi foodgrains is anticipated to rise by 6.2% between 2022 and 2023. The index of industrial production (IIP), a measure of the strength of industrial activity, increased by 5.2% in January while the output of eight core sectors increased even faster by 8.9% in January and 6.0% in February.

Domestic air passenger travel, port freight traffic, e-way bills and toll collections all had robust increase in the services sector in Q4, whilst rail freight traffic saw only minor growth. In March, the purchasing managers’ indexes (PMIs) indicated that both the manufacturing and service sectors would continue to expand steadily.

Due to stronger inflation in cereals, milk, and fruits and slower deflation in vegetable prices, the CPI’s headline inflation increased from 5.7% in December 2022 to 6.4% in February 2023.

Core inflation, which is the CPI without regard to food and fuel, remained high and exceeded 6% in January and February.

The MPC made the decision to keep its unwavering focus on bringing inflation in line with the goal.

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