The Reserve Bank of India’s (RBI) annual report for 2022-23 released on Tuesday broadly confirms wider assessments that the economy is expanding healthily but not all is well.
It sees output having grown 7% in the year gone by. That makes it the world’s fastest-growing major economy. But the second half witnessed moderation, according to RBI, which suggests the momentum is slowing.
Besides a base effect, blame weakened private consumption, slowing exports and sustained input cost pressures for that. In addition, private investment has been lacklustre.
That has become a persistent worry. While public spending has done well to take on a bigger burden of driving the economy forward, a revival in private investment before the government starts to feel the pressure to pull the strings is sorely needed.