India’s GDP growth: Based on high frequency indicators and economic forecasting models, the Reserve Bank of India (RBI) stated in its monthly bulletin that the country’s economy will increase between 6.1% and 6.3% in the second quarter of the current fiscal year.

“If this is realised, India is on course for a growth rate of about 7% in 2022-23,” the central bank said. At the end of this month, data for the quarter from July to September will be made available.

“With headline inflation beginning to show signs of easing, the domestic macroeconomic outlook can best be characterised as resilient, but sensitive to formidable global headwinds,” the RBI said.

“While urban demand appears to be robust, rural demand is muted, but more recently picking up traction.” The central bank, however, highlighted that the global economy continues to be clouded with downside risks, with global financial conditions tightening and deteriorating market liquidity amplifying financial price movements.

“Markets are now pricing in moderate increases in policy rates and risk-on appetite has returned. In India, supply responses in the economy are gaining strength,” the RBI said.