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The Central government on Friday retained a positive outlook for India's economic growth for the fiscal years 2023-24. In the 'Monthly Economic Report July 2022,' the government noted that the private sector and banking sector balance sheets are healthy and there is an appetite to borrow and to lend respectively. "Barring further adverse shocks to commodity prices, India’s terms of trade, economic growth will consolidate and retain its momentum into 2023-24," the Centre highlighted.

Further, the report said that in the coming months Kharif sowing supported by the southwest monsoon coupled with higher MSP for Kharif crops is likely to enhance rural demand. And, urban consumption is expected to benefit from the demand for contact-intensive services, improving the performance of corporates and growing optimism of consumers, it added.

According to the central government, the manufacturing sector is expected to gain from the easing of input prices and a rise in consumer demand during the festive season. Last month, India’s manufacturing activity grew at its fastest pace in eight months in July, driven by better demand conditions and a pick-up in sales.

Besides, housing sales and the launch of new houses in the top 8 cities registered significant sequential growth in Q1 of FY 2022-23 despite an increase in the interest rate on home loans and a rise in property prices.

The Centre lauded RBI's efforts in tackling inflation. It said that the swift action by the Reserve Bank of India in raising policy rates has "contributed to dampening the inflation rate staving off the risk of higher interest rates and higher cost of capital for the government and for the industry".

On FPI, the report mentioned that confidence of foreign investors remained intact in the Indian economy last month as FPIs turned net buyers in July.

Last month, the finance ministry said that the Indian economy is on course to achieve projected 8-8.5% growth based on high-frequency indicators for the first quarter of the FY 2022-23.

The ministry said that Gross Domestic Product (GDP) at current prices for 2021-22 stood at 2,36,64,637 crore as per provisional estimates of annual national income 2021-22.

The real GDP growth rate for FY 2021-22 stood at 8.7% while the central government's fiscal deficit for FY 2021-22 was 15,86,537 crore, which is 6.7% of GDP.

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