India's economic growth rate to grow at 7.4 % in current financial year: RBI

Mumbai, August 30: The Reserve Bank expects India's economic growth rate to grow at 7.4 percent in the current financial year on pick up in industrial activity and a good monsoon.

 

RBI released its annual report in Mumbai on Wednesday said due to the evolving economic conditions, real GDP growth for 2018-19 is expected to increase to 7.4 percent from 6.7 percent in the previous year.

The RBI said its monetary policy will continue to be guided by the objective of achieving the medium-term target for retail inflation of four percent. Agricultural production is likely to remain strong, growth in the industry is strengthening and all other major sectors are reporting robust sales and improvement in profitability.

"The year 2017-18 turned out to be a year of inflections in the growth path of the Indian economy, despite the lingering after-effects of demonetization and the GST implementation," stated the central bank report.

The prevailing negative credit-to-GDP gap indicates that there is sufficient scope for credit absorption and expansion in bank lending on a sustained basis.