RBI slashes India's growth forecast to 7% from 7.2% amid aggressive monetary policy tightening globally

New Delhi: The Reserve Bank of India on Friday slashed the growth projection to 7% for the current fiscal from the earlier forecast of 7.2%, citing aggressive tightening of monetary policies globally and moderation in demand. Unveiling the fifth monetary policy for this fiscal, RBI Governor Shaktikanta Das said the central bank remains committed to price stability to put the country on the sustained path of growth.

Real GDP growth in the first quarter of the current fiscal was 13.5%. Das, however, cautioned that there is a third wave of shock globally triggered by aggressive monetary policy tightening to curb inflation.

The central bank in April slashed the real GDP growth projection to 7.2% from its earlier forecast of 7.8% for 2022-23.