Indian Economy: The Reserve Bank of India concluded its three-day monetary policy meeting on Friday by leaving the repo rate at 6.50% unchanged. For the sixth time in a row, the RBI has maintained policy rates unchanged. RBI expressed confidence in the direction of India’s economy across a number of important metrics by firmly endorsing the economic policies implemented under the Modinomics. Here’s a detailed rundown of everything you need to know about the state of the economy under the PM Modi government, from strong GDP growth to fortified foreign exchange reserves.
GDP Growth
According to the most recent government data, the National Statistical Office (NSO) reported that the GDP rose by 8.4% during the October–December quarter of 2023 compared to 4.3% during the same period in 2022.
Forex Reserves
According to figures released on Friday by the Reserve Bank of India, India’s foreign exchange reserves increased for a fifth consecutive week and totaled $642.63 billion as of March 22. The reporting week saw a $140 million increase in reserves. Previously, during the week ending March 15, 2024, foreign exchange reserves increased by $6.4 billion to $642.49 billion.
Monetary Policy
The RBI’s support for modinomics is reflected in all of its monetary policy choices. The government’s economic plan and the central bank’s congruence point to a coordinated strategy for ensuring stability and sustained growth.
Economic Assessment
The fact that the Finance Ministry agreed with the RBI’s judgement adds even more credence to the optimistic picture of the economy under Modinomics. This cooperative endeavour demonstrates the government’s resolve to guide the economy towards prosperity.
To sum up, the RBI’s endorsement of Modinomics highlights the government’s achievements in promoting economic expansion, strengthening foreign exchange reserves, and enacting prudent monetary policies. The government’s and the RBI’s cooperative approach shows a common goal of a robust economy.
