MUMBAI: The Reserve Bank of India (RBI) has said that India’s growth momentum is likely to continue in 2023-24 even as it made a case for pushing structural reforms to deal with geopolitical developments and also to achieve sustained growth in the medium-term.
The Reserve Bank’s annual report, released on May 30, flagged slowing global growth, protracted geopolitical tensions and a possible upsurge in financial market volatility as possible downside risks to growth.
The report noted that volatility had ebbed in global financial markets and risks to financial stability, from the failure of banks in some advanced economies in March, had eased. Resolute policy actions have stemmed the tide of confidence runs for now, it said.
“Amidst strong global headwinds, the Indian economy is expected to have recorded a growth of 7.0 per cent in real GDP in 2022-23,” it said.
The report said that digital transformations were responsible for India’s post-pandemic resilience. It said that India saw massive growth in total digital payments during the pandemic and after the pandemic.
Transactions routed through digital modes recorded a marked expansion in 2022-23 over and above the strong growth witnessed a year ago.
“In 2022-23, total digital payments recorded growth of 57.8 per cent and 19.2 per cent in volume and value terms, respectively, on top of growth of 63.8 per cent and 23.1 per cent, respectively, in the previous year,” the report said.
It added that India outpaced other nations to emerge as the largest player in real-time transactions at the global level, with a 46 per cent share in 2022.