RBI retains economic growth forecast at 6.5% for this fiscal

The Reserve Bank on Friday said India is poised to become the growth engine of the world as it retained the GDP projection for the current fiscal at 6.5 per cent.

Unveiling the bi-monthly monetary policy review, Reserve Bank of India (RBI) Governor Shaktikanta Das said the domestic economy exhibits resilience on the back of strong demand.

He said the economic growth in the current year is expected to be at 6.5 per cent with risks evenly balanced. The projection is the same as was estimated in the August monetary policy. Nayan Raheja, Raheja Developers said, "RBI’s commitment to maintain the repo rates has been in resonance with the hope of buyers. This will encourage the real estate market, with buyers from every walk of life approaching to make an investment in the auspicious festive season."

"RBI's decision to maintain the repo rates at 6.5 per cent will bring positive developments in the real estate sector. Less volatility in the loan interest rates would increase buyer and developer confidence, fostering long-term growth. The development of both residential and commercial real estate developments is accelerated by lower financing rates, which also boost employment in the construction industry," added Salil Kumar, Director CRC Group. 

There have been mixed reactions from the industry, though. Mohit Goel, MD, Omaxe Group noted that despite RBI maintaining the status quo in the last few MPC meets, including the current quarter, the Repo Rate at 6.5 per cent is still high. Even though the real estate sector has remained unaffected and continues performing well, we hope RBI meets its objective of reining inflation. Ashwinder R Singh, CEO Residential Bhartiya Urban stated that in the backdrop of steadfast repo rates, controlled EMIs, and robust developer funding, the Indian housing and real estate sector stands on solid ground. With healthy economic indicators and anticipated strong corporate earnings, our future is bright. 

The RBI continued to maintain status quo in the key policy rate and retained the repo rate at 6.5 per cent for the fourth time in a row.