RBI Monetary policy today: Net FPI inflows stand at USD 8.4 billion during current financial year:, says Shaktikanta Das
Net FPI inflows at USD 8.4 billion in current financial year up to June 6, according to RBI governor Shaktikanta Das, who also projected a 6.5% real GDP growth for FY2024 and a headline inflation of 5.1% for FY2023.
PremiumThe Reserve Bank of India (RBI) governor Shaktikanta Das on Thursday said that the net Foreign portfolio investment (FPI) inflows stand at USD 8.4 billion during the current financial year upto June 6 as against net outflows in the proceeding two years where USD 14.1 billion in 2021-22 and 5.9 billion in 2022-23.
During a briefing, Das said, "On Foreign portfolio investment (FPI) have seen a significant portfolio this year since April 2023-24, led by equity flows. The net FPI inflows stand at USD 8.4 billion during the current financial year up to June 6 as against net outflows in the proceeding two years were USD 14.1 billion in 2021-22 and 5.9 billion in 2022-23.
Das further added,"Net FPI flows to India where 28 billion dollars in 2022-23 compared to 38.6 billion dollars in the previous year."
The real GDP growth is projected for FY2024 at 6.5%. Quarter-wise, Das projected GDP in Q1 FY2024 at 8%; Q2: 6.5%, Q3:6%, and Q4: 5.7%, respectively.
In India, Consumer Price Inflation eased during March-April 2023 and moved into the tolerance band, declining from 6.7% in 2022-23. However, headline inflation is still above the target as per the latest data and is expected to remain so according to our projections for 2023-24. Inflation will remain above 4% throughout 2023-24, Das added.
According to the RBI Governor, 1QFY2024 inflation estimated at 4.6%, 2QFY2024 at 5.2%, 3Q FY24 at 5.5%, and 4Q FY2024 at 5.2%, respectively.
He said retail inflation has been below the upper band of 6% for the last two years.
"Taking into account all factors and assuming a normal monsoon, CPI headline inflation is projected at 5.1% for 2023-2024," RBI Governor said on Thursday.
Das concluded that the "Goal is to reach the targeted 4% inflation going forward, our monetary policy actions are yielding desired results giving us space to keep rates unchanged in this meeting".
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