Inflation Outlook Food inflation is likely to push up headline inflation in November and, maybe, in December, said Das. As such, the central bank will watch out for second round effects.
Growth Outlook Domestic demand conditions are expected to benefit from the sustained buoyancy in services, revival in rural demand, consumer and business optimism, the government’s thrust on capex, and healthy balance sheets of banks and corporates.
The drag from external factors is expected to moderate though risks to outlook remain.
Taking all these factors into consideration, real GDP growth for 2023-24 is projected at 7% from 6.5%, Q3 at 6.5% from 6%, and Q4 at 6% from 5.7%, with risks evenly balanced. Real GDP growth for Q1:2024-25 is projected at 6.7% from 6.6% earlier, q2 at 6.5%, and Q3 at 6.4%.
