{"id":22313,"date":"2023-04-25T07:01:15","date_gmt":"2023-04-25T07:01:15","guid":{"rendered":"http:\/\/lynettelockhart.com\/client\/india-says-risks-weigh\/"},"modified":"2023-04-25T07:03:38","modified_gmt":"2023-04-25T07:03:38","slug":"india-says-risks-weigh","status":"publish","type":"post","link":"http:\/\/lynettelockhart.com\/client\/india-says-risks-weigh\/","title":{"rendered":"India says risks weigh on FY24 growth forecast, but macros stable"},"content":{"rendered":"<p>NEW DELHI (Reuters) &#8211;     There are risks to India achieving its real growth forecast of 6.5% for the financial year that started April 1, partly due to a rise in oil prices and troubles in the global financial markets, the government said on Tuesday.<\/p>\n<p>Earlier this month, the International Monetary Fund (IMF) predicted the Indian economy would grow 5.9% in the 2023-24 financial year, down 0.2% from its January estimate, as it warned that turmoil in the financial system will hurt global growth.<\/p>\n<p>&#8220;We reiterate that downside risks to our official forecast of 6.5% for real GDP growth in FY24 dominate upside risks,&#8221; India&#8217;s finance ministry said in a monthly economic review. <\/p>\n<p>Factors such as potential risks from El Nino conditions could also lower agricultural output and impact prices, apart from geopolitical conditions, affecting growth and anticipated inflation, the review said. <\/p>\n<p>However, the country is projected to be the world&#8217;s fastest growing economy in 2023\/24 on the back of robust macroeconomic conditions. These include easing inflation, improved current account deficit and a strong banking system.<\/p>\n<p>The Indian finance ministry&#8217;s review also said the country&#8217;s banking system is less prone to incidents such as collapse of a few banks in the US and Europe owing to an interest rate tightening cycle. <\/p>\n<p>&#8220;Banking supervision is robust with the Reserve Bank of India&#8217;s overarching coverage of institutions, regardless of asset size, in its bi-annual assessment of financial stability,&#8221; the review said.<\/p>\n<p>Limiting banks&#8217; investments in &#8220;held-to-maturity&#8221; securities to 23% of deposits insulates value of assets from adverse market developments, the government said. Banks have suitable buffers against securities markets investment fluctuations.<\/p>\n<p>US-based Silicon Valley Bank held bonds that they deemed to be held-to-maturity, or for longer durations, which lost value when interest rates increased, creating losses for the asset side of their balance sheet.<\/p>\n<p \/>\n<p> (Reporting by Shivangi Acharya and Nikunj Ohri; Editing by Nivedita Bhattacharjee)<\/p>\n<p><a href=\"http:\/\/lynettelockhart.com\/client\/india-says-risks-weigh\/a-fruit-vendor-tends-to-customers-at-a-fruit-and-2\/\"><img decoding=\"async\" src=\"http:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportEconomy\/tagreuters.com2023binary_LYNXMPEJ3O06H-VIEWIMAGE.jpg\" alt=\"tagreuters.com2023binary_LYNXMPEJ3O06H-VIEWIMAGE\"><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>NEW DELHI (Reuters) &#8211; There are risks to India achieving its real growth forecast of 6.5% for the financial year that started April 1, partly due to a rise in oil prices and troubles in the global financial markets, the government said on Tuesday. Earlier this month, the International Monetary Fund (IMF) predicted the Indian [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":22314,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[1216],"tags":[1223],"class_list":["post-22313","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-u-s-economy","tag-updated"],"jetpack_featured_media_url":"http:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportEconomy\/tagreuters.com2023binary_LYNXMPEJ3O06H-VIEWIMAGE.jpg","_links":{"self":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/22313","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/comments?post=22313"}],"version-history":[{"count":1,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/22313\/revisions"}],"predecessor-version":[{"id":22315,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/22313\/revisions\/22315"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media\/22314"}],"wp:attachment":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media?parent=22313"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/categories?post=22313"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/tags?post=22313"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}