Home/ Economy / India to remain 5th largest economy in 2023, says RBI bulletin

A Reserve Bank of India (RBI) bulletin said on Thursday that India will maintain its position as the fifth-largest economy in 2023. It further said that India will become a USD 3.7 trillion economy in 2023 and will continue to maintain its lead on the United Kingdom, stressing that the macroeconomic stability is getting entrenched.

Recent data arrivals indicate that the first milestone of monetary policy is being passed – bringing inflation into the tolerance band, mentions the article titled 'State of the Economy' published in the January bulletin of the RBI. The article has been authored by a team lead by RBI Deputy Governor Michael Debabrata Patra.

The article said that the objective in 2023 is to chain inflation therein to align with the target by 2023.

The RBI article said, "At current prices and exchange rates, therefore, India will be a USD 3.7 trillion economy in 2023, maintaining its lead over the UK as the fifth largest economy of the world."

As per the International Monetary Fund (IMF), India will move into fourth place in 2025 and into third place in 2027 as a USD 5.4 trillion economy. The baseline assessment was a slowdown due to the possibility of a recession affecting the global economy.

"In India, the softening of commodity prices and other costs amidst strong revenues appears to have boosted corporate performance," it said. The central bank said views expressed in the article are those of the authors and do not represent the views of the Reserve Bank of India.

The RBI bulletin also said that the fiscal consolidation is underway at central and sub-national levels, graduated to nurture the pace of the economic recovery. It further added that the account deficit will narrow in rest of 2023.

It said, “...2023 may well be the opening ajar of a window in which India’s time on the world stage is arriving."

(With agency inputs)

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Updated: 19 Jan 2023, 10:52 PM IST
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