India is striving to build a global manufacturing hub and a preferred habitat for companies to shift their production bases, it noted.
Turning to early developments in 2023, macroeconomic stability is getting further entrenched. Recent data arrivals indicate that the first milestone of monetary policy is being passed – bringing inflation into the tolerance band. The objective during 2023 is to tether inflation therein so that it aligns with the target by 2024—the second milestone.
Fiscal consolidation is under way at central and sub-national levels, graduated to nurture the pace of the economic recovery. Lead indicators suggest that the current account deficit is on course to narrow through the rest of 2022 and 2023.
India’s stock markets stood out in 2022 and continue to outperform peers on the strength of macroeconomic fundamentals and retail participation, the RBI Bulletin said.
This year may well be the opening of a window in which India’s time on the world stage is arriving, it added.
ALCHEMPro News Desk (DS)
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