Proactive measures by government brought inflation within RBI’s tolerance limit: Economic Survey

New Delhi [India], February 1 (ANI): The Economic Survey for 2022-23 notes that the measures taken by the government and Reserve Bank of India, besides the easing of global commodity prices, have managed to bring retail inflation below the Indian central bank’s upper tolerance band of 6 per cent.

India’s retail inflation was above RBI’s six per cent target for three consecutive quarters, and had managed to fall back to the RBI’s comfort zone in November 2022.

India’s retail inflation rate based on Consumer Price Index declined to 5.88 per cent in November from 6.77 per cent during the previous month. Under the flexible inflation targeting framework introduced in 2016, the RBI is deemed to have failed in managing price rises if the CPI-based inflation is outside the 2-6 per cent range for three quarters in a row.

“The rise in consumer prices has slowed considerably. The annual rate of inflation is below 6 per cent,” the Survey said.

Union Finance Minister Nirmala Sitharaman tabled the Economic Survey for 2022-23 in the Parliament, a day ahead of the national Budget for next financial year.

The Survey pegged Indian economy to grow at 7 per cent (in real terms) during the financial year ending March 2023.
This follows an 8.7 per cent growth in the previous financial year – 2021-22, the survey document said.

Coming to GDP for next financial year 2023-24, the Economic Survey has projected a baseline GDP growth of 6.5 per cent in real terms.

The survey document said the projection is broadly comparable to the estimates provided by multilateral agencies such as the World Bank, the IMF, and the ADB and by RBI.