INDIAN ECONOMY RESILIENT, ON COURSE TO ACHIEVE 7% GROWTH IN FY'23: RBI ARTICLE

With headline inflation beginning to show signs of easing, the domestic macroeconomic outlook appears to be resilient and on a course for about 7 per cent GDP growth in the current fiscal though India is still sensitive to global headwinds, an RBI article said on Friday.

The article published in the latest RBI bulletin also said the outlook for the global economy remains clouded with downside risks. Global financial conditions have been tightening and deteriorating market liquidity is amplifying financial price movements.

Markets are now pricing in moderate increases in policy rates and risk-on appetite has returned. In India, supply responses in the economy are gaining strength, it noted.

"With headline inflation beginning to show signs of easing, the domestic macroeconomic outlook can best be characterised as resilient but sensitive to formidable global headwinds," the article said.