RBI projects economic growth at 6.4% for next fiscal

New Delhi: The RBI on Tuesday projected India's economic growth to slow down to 6.4 per cent in FY24 from 7 per cent in the current fiscal, citing risks from geo-political tension and tightening global financial condition.

Announcing the bi-monthly monetary policy, Reserve Bank of India Governor Shaktikanta Das said the RBI's internal survey says manufacturing, services and infrastructure sector firms are optimistic of the business outlook.

However, protracted geo-political tension, tightening global financial conditions and external demands continue as downside risks to the domestic outlook, he noted.

"The real GDP growth for 2023-24 is projected at 6.4 per cent," Das said.

In 2023-24, the growth in the June and September quarter is projected at 7.8 per cent and 6.2 per cent, respectively. In the December and March quarter, the GDP growth is estimated at 6 per cent and 5.8 per cent, respectively.

"Monetary policy will continue to be agile and alert to effectively address challenges to the economy," Das said.

Several economists and rating agencies have projected India's real GDP growth to slow to between 6-6.5 per cent in the next fiscal.