India News | Highlights of RBI's First Bi-monthly Policy Statement for FY'25

Mumbai, Apr 5 (PTI) Following are the highlights of the RBI's first bi-monthly monetary policy statement for 2024-25 fiscal announced by Governor Shaktikanta Das.

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* Benchmark interest rate or repo rate kept unchanged at 6.5 pc

* GDP growth for 2024-25 retained at 7 pc, lower than 7.6 pc last fiscal

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* Retail inflation to average 4.5 pc this fiscal, lower than 5.4 pc in FY24

* Food price uncertainties to continue to weigh on inflation outlook

* With rural demand catching up, consumption is expected to support economic growth in FY25

* Outlook for agriculture, rural activity appears bright, with good rabi wheat crop and improved prospects of kharif crops, due to expected normal monsoon

* Strong rural demand, moderating inflationary pressures and sustained momentum in manufacturing and services sector to boost private consumption

* The headwinds from protracted geopolitical tensions and increasing disruptions in trade routes, however, pose risks to the outlook

* Strong growth momentum, along with GDP projections for 2024-25, gives RBI the policy space to unwaveringly focus on price stability

* Trading of Sovereign Green Bonds permitted in International Financial Services Centre (IFSC)

* To launch a mobile app to facilitate retail participation in G-secs

* To allow cash deposits in banks through UPI

* Permits non-bank payment system operators to offer CBDC (Central Bank Digital Currency) wallets

* Net inflows by foreign porfolio investors (FPI) stood at USD 41.6 billion during 2023-24, the second highest level of FPI inflow after 2014-15

* India continues to be the largest recipient of remittances in the world

* Current Account Deficit in 2024-25 to remain at a level that is both viable and eminently manageable

* The Indian rupee remained largely range-bound as compared to its emerging market peers as well as a few advanced economies during 2023-24.

* INR most stable among major currencies in FY24

* Next monetary policy committee (MPC) meeting scheduled during June 5 to 7, 2024.

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