- According to them, it is expected that India’s retail inflation to increase to 6.8% in 2022 compared to 5.7% in 2021.
- Even though the Reserve Bank of India (RBI) has increased the repo rate by 40 basis points, inflation remains above the upper tolerance limit set by the RBI i.e 2-6 percent.
- The main reason behind the high inflation is a rise in crude oil, food, and fertilizers prices due to the Ukraine crisis which directly impacts household finances.
- However many steps have been taken to tackle it like strong credit growth, a large increase in investment intentions announced by the corporate sector, and a high budget allocation to capital spending by the government but still need to recover from this situation.
- Not only that rating agency has also lowered its global growth projection to 3.1% for 2022.
Question:
Q.1 According to Moody what will be India’s GDP growth rate for the Current year 2022?a. 7.2%
b. 8.8%
c. 7.6%
d. 8.1%
