According to the minutes of the latest RBI monetary policy meeting minutes, the RBI Governor Shaktikanta Das stated that liquidity remains in surplus mode, even as the surplus is moderating. The overall monetary and liquidity conditions, therefore, remain accommodative. In such a scenario, it is necessary to persevere with the stance of withdrawal of accommodation to ensure a decisive process of disinflation. The sustained buoyancy in domestic demand, especially private consumption and investment, is driving growth. While weak external demand is a drag on our merchandise exports, growth of remittances and exports of services is robust. Going ahead, the persisting recovery in contact-intensive services and good prospects of rabi production are likely to support urban and rural consumption. The enhanced thrust on capital spending and infrastructure in the Union Budget 2023-24 should bolster manufacturing and investment activity.
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