MUMBAI: At a time when the world is staring at recession, the Indian economy will consolidate its position in the global economy. The size of Indian economy is expected to reach $3.7 trillion during this year, making it the fifth largest economy in the world, said Reserve Bank of India (RBI) bulletin.
“At current prices and exchange rates, India will be a $3.7 trillion economy in 2023, maintaining its lead over the UK as the fifth-largest economy in the world,” said the RBI in its recent bulletin released on Thursday. As per the International Monetary Fund’s (IMF) calculations, India will move into fourth place in 2025 and into third place in 2027 as a $ 5.4 trillion economy, noted the bulletin. On the inflation front, the central bank targets to bring prices further down. It targets to restrict inflation under its tolerance zone of 2-6 % during the current year.
“Recent data arrivals indicate the first milestone of monetary policy is being passed, bringing inflation into the tolerance band. The objective during 2023 is to tether inflation therein so that it aligns with the target by 2024, the second milestone,” said RBI.
Annual retail inflation rose 5.72% in December against 5.88% in last month, dipping below 6% for a second straight month after having stayed above RBI’s tolerance for 10 months. Year 2023-24 may see fall in real GDP from 7% in 2022-23 (NSO estimates) to 6.5 % as projected in monetary policy report of September 2022, noted the bulletin.