RBI releases 2022-23 annual report: From economy growth to CAD – check key takeaways

The Reserve Bank of India released an annual report for 2022-23 on Tuesday, May 30, 2023, ahead of the gross domestic product (GDP) numbers for the full year and the January-March quarter of the financial year 2022-23 (FY23).

The central bank pointed out that India is likely to maintain its growth trajectory and believes that the structural reforms may increase the country’s growth potential, going forward.

Here are the top key takeaways from the RBI’s annual report 2022-23

• India's growth momentum is likely to be sustained in 2023-24 in an atmosphere of easing inflationary pressures.
• Factors that would help India to continue its growth trajectory - sound macroeconomic policies, softer commodity prices, a robust financial sector, a healthy corporate sector, and others.
• Important to sustain structural reforms to improve India's growth potential amid slowing global growth, and geopolitical tensions.
• Current Account Deficit (CAD) is expected to remain moderate on the back of robust services exports, and the salubrious impact of moderation in commodity prices of imports.
• Monetary policy remains focused on accommodation withdrawal to ensure inflation aligns with the target while supporting growth.
• The inflation trajectory is expected to move down to 5.2 per cent this fiscal from the average level of 6.7 per cent recorded last year.
• RBI to expand the ongoing pilots in central bank digital currency (CBDC) at the retail, and wholesale levels.
• The monetary policy remains focused on the withdrawal of accommodation to ensure that inflation progressively aligns with the target while supporting growth.
• With global uncertainties persisting, foreign portfolio investment (FPI) flows may remain volatile.
• With a stable exchange rate and a normal monsoon -- unless an El Nino event strikes -- the inflation trajectory is expected to move down over 2023-24.
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(This is a developing story)