Shaktikanta Das, the governor of the Reserve Bank of India
Shaktikanta Das, the governor of the Reserve Bank of India, predicted on Wednesday that the economic growth of India will be at a rate of 7% in the upcoming fiscal year and that inflation would probably decline.
Administration credited for the economic growth
Additionally, he gave the administration credit for the structural changes that have been made recently, stating that they have improved the Indian economy’s medium- and long-term development prospects. He claimed that India shows signs of stability and prosperity in the face of a difficult global macroeconomic climate.
Speaking at a CII session titled “High growth, low risk: The India story” at the World Economic Forum Annual Meeting, Das stated that while growth is still modest, recent data on the state of the global economy has been encouraging, with inflation declining.
“Chances of soft landing have improved and markets have reacted positively. However, geopolitical risks and climate risks remain matters of concern,” he said.
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7.2% real GDP growth anticipated
According to the governor of the RBI, 7.2% real GDP growth is anticipated in India this year.
“With strong domestic demand, India remains the fastest growing major economy… We have emerged stronger out of the recent spate of global shocks,” he noted.
Das continued by saying that the country’s strong foreign exchange reserves make managing the external balance easy. “Headline inflation has substantially eased from highs of summer of 2022. This shows that our monetary policy action and rebalancing of liquidity is working.”
“Core inflation has also gradually and steadily moderated, while proactive supply-side interventions by the government have also played a key role in handling food price shocks,” he said.
According to Das, the average CPI inflation rate for the upcoming year is expected to be 4.5%, and the RBI is dedicated to meeting the 4% target as soon as possible. “We expect the Indian economy to grow by 7 per cent in 2024-25,” he said. The government has given the Reserve Bank of India the mandate to guarantee that retail inflation stays at 4% with a margin of 2% on each side.
