January 18, MUMBAI (Reuters) - In an atmosphere of macroeconomic stability, India must seek to maintain the current growth pace and ensure real GDP growth of at least 7% in the upcoming fiscal year, according to the Reserve Bank of India's monthly bulletin, which was made public on Thursday.
The Reserve Bank of India stated in a piece titled "State of the Economy" that "in India, potential output is picking up with actual output running above it, although the gap is moderate."

The Indian Statistics Office earlier this month predicted 7.3% annual growth for the current fiscal year, which ends in March—the highest growth rate among the major world economies.
Although the RBI has set a 7% prediction, it may increase it at its meeting on February 8 to review monetary policy.
"Inflation needs to align with the target by the second quarter of the year, as projected, and get anchored there," the Federal Reserve stated.

Additionally, it emphasized that financial institutions must continue to consolidate their external and fiscal balance sheets and strengthen their balance sheets and asset quality.
"The virtuous thrust to investment from government capex must be partnered, and even led, by the corporate sector, supplemented by foreign direct investment," the central bank stated.
The RBI pointed out in a different piece on the relationship between food prices and inflation that significant and sustained shifts in food prices can have a long-lasting effect on headline inflation because the prices of specific food group components are thought to meet core inflation criteria.

"Policymakers need to determine the sources and nature of food price shocks to minimise the risks of over-reacting to transitory shocks as well as of looking through persistent shocks," it stated.
The recent attacks on commercial ships in the Red Sea trade route have put pressure on global supply networks, forcing rerouting via South Africa's Cape of Good Hope, according to the RBI.
"These developments impart considerable uncertainty to the near-term outlook for India's merchandise trade."