Page 4 - Policy Economic Report - April 2023
P. 4
Policy and Economic Report:
Oil & Gas Market
In the services sector, domestic air passenger traffic, port freight traffic, e-way bills and toll collections
posted healthy growth in Q4, while railway freight traffic registered a modest growth.
Considering the growth trends and factors influencing growth along with an assumption of a normal
monsoon for 2023 RBI has projected the GDP growth for FY 2023-24 at 6.5 % with quarterly break up of
Q1 at 7.8 %, Q2 at 6.2 %, Q3 at 6.1 % and Q4 at 5.9 %.
India’s retail inflation (CPI) for March 2023 fell to a 15-month low of 5.66% as compared to 6.95% reported
in the year ago period, according to data released by National Statistics Office (NSO). The food prices
moderated on account of lower vegetable costs, offset in part by surging cereal prices. RBI has forecasted
a reduction in inflation rate for FY 2023-24 which is below the upper tolerance band of 6 % with Q1 at 5.1
%, Q2 and Q3 at 5.4 %, Q4 at 5.2 % and an annual average rate of 5.2 %.
Source- NSO
To rein in the prices, the Reserve Bank of India (RBI) has so far hiked the benchmark repurchase rate by
250 basis points cumulatively since May 2022. The rate has been 6.50% in March 2023. In April 2023, the
Monetary Policy Committee (MPC) decided to keep repo rate unchanged at 6.50 %.
The manufacturing activities in India accelerated and touched a four-month high in April, boosted by
robust new business growth, mild price pressures, better international sales, and improving supply-chain
conditions. S&P Global India Manufacturing Purchasing Managers’ Index (PMI) in April rose to 57.2 in April
from 56.4 in the month of March, 2023. India's manufacturing industry saw expanded at the fastest rate
this calendar year so far on the back of stronger factory orders and production.
India's forex reserves ease after hitting over nine-month highs and stood at $584.25 billion for the week
ended April21, 2023, according to RBI data. For the week ended April 21, the foreign currency assets, a
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