India's Economy Sustaining Recent Growth Momentum, Says RBI

The RBI said if services exports maintain their recent high momentum, the drag from net external demand should moderate through April-June 2023.

India's economy has sustained the growth momentum seen in the last fiscal quarter of 2022/23, while latest inflation outcome has been better than forecast, the Reserve Bank of India said on Monday.

Growth in the first quarter of 2023/24 is expected to be driven by private consumption, a revival in rural demand and renewed buoyancy in manufacturing on easing of input cost pressures, the central bank said in its "State of the Economy" report, published as part of its monthly bulletin.

"Investment activity is also expected to improve, drawing strength from the thrust on capital expenditure in public spending and moderation in commodity prices," it added.

India's services exports rose 13.1% on year to $30.48 billion in March, provisional RBI data showed in early May. April services exports as per provisional government data rose to $30.36 billion.