May 30 (Punjab Khabarnama) : The Reserve Bank of India has released its annual report for the financial year 2023-24. The central bank (RBI) has projected the Indian economy to grow at a rate of 7 per cent in the current financial year (2024-25) starting from April. In its annual report released on May 30, the RBI said that inflation moving towards the targeted level will boost consumption demand, especially in rural areas.
According to the report, the strength of the external sector and foreign exchange reserves will protect domestic economic activity from global impacts. The report states that geopolitical tensions, global commodity price fluctuations, uncertain seasonal developments pose downside risks to growth prospects.
The central bank has said in its report that the Indian economy will have to deal with the challenges posed by the rapid adoption of AI/ML technologies and frequent climate shocks.
According to the RBI, the Indian economy is well positioned to increase the pace of growth in the next decade in a scenario of macroeconomic and financial stability. RBI has also said in its report that GDP growth is strong on the back of solid investment demand supported by strong balance sheets of banks and corporate sector.