According to media news report, The Reserve Bank of India expects India’s economic growth rate to grow at 7.4% in the current financial year on pick up in industrial activity and good monsoon, news reported.
Reportedly RBI releasing its annual report in Mumbai saying that due to the evolving economic conditions, real GDP growth for 2018-19 is expected to increase to 7.4 per cent from 6.7percent in the previous year and said its monetary policy will continue to guided by the objective of achieving the medium term target for retail inflation of four per cent. Agriculture production is likely to remain strong, growth in industry are strengthening and all other major sectors are reporting robust sales and improvement in profitability.
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.
Reportedly the RBI also said that its monetary policy will continue to be guided by the objective of achieving the medium term target for retail inflation of 4 percent, while supporting the growth. It also had indicated that headline inflation may face upside risks in the remaining portion of the year.RBI reportedly also warned against rising bad loans, media news report said.