Reserve Bank of India (RBI) Governor Shaktikanta Das has expressed confidence that India’s robust economic growth trajectory from the previous financial year will persist through the April-June quarter of the current fiscal year.
Governor Das attributed this optimism to the country’s solid economic fundamentals.
Addressing reporters at a media briefing on Tuesday, Governor Das remarked, “We are quite sanguine that the projection we have given for the first quarter of this year, 7.2 percent, we are quite optimistic that it will be 7.3 percent.”
Governor Das also noted a positive recovery in private consumption and highlighted a resurgence in rural demand, driven by stronger growth in the agricultural sector.
The India Meteorological Department’s forecast of a higher-than-normal monsoon is bolstering optimism in rural sectors, expected to significantly boost the Kharif crop output.
Earlier this month, the RBI revised its projection for real gross domestic product (GDP) growth for the fiscal year 2024-25 upward to 7.2 percent, from the previous estimate of 7 percent.
Governor Das further elaborated on the quarterly GDP growth projections, stating expectations of 7.3 percent in Q1, 7.2 percent in Q2, 7.3 percent in Q3, and 7.2 percent in Q4.
The RBI’s optimism stems from several key economic indicators showing positive momentum, despite global uncertainties.
Governor Das emphasized that while challenges persist, including external factors like fluctuating commodity prices and geopolitical tensions, India’s economic fundamentals remain resilient.
Analysts and industry experts have generally welcomed these projections, viewing them as reflective of the country’s ability to sustain growth amidst global economic challenges.
Governor Das concluded his remarks by reaffirming the RBI’s commitment to supporting economic growth while maintaining price stability, a dual mandate that remains central to the central bank’s policy framework.
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