 "RBI Governor Shaktikanta Das predicts India’s growth potential at 7.5% amidst balanced inflation and economic risks, addressing global finance in Singapore.")
Reserve Bank of India Governor Shaktikanta Das, speaking at the Future of Finance Forum in Singapore, projected India’s growth potential at over 7.5 percent for the ongoing financial year, surpassing the RBI’s own estimate of 7.2 percent. He acknowledged a slower growth rate of 6.7 percent in the April-June quarter due to reduced government spending from the Lok Sabha elections. Das emphasized the balanced risks surrounding growth forecasts, backed by strong macroeconomic fundamentals and key contributions from private consumption and investment. While inflation has decreased from its peak, he cautioned that ongoing vigilance is necessary. Das also highlighted challenges in merchandise exports amid weaker external demand but noted positive trends in fiscal consolidation and corporate performance.
Title: RBI Governor Shaktikanta Das Highlights India’s Growth Potential at Global Forum
Tags: RBI, Shaktikanta Das, India growth, financial stability, inflation forecasts
In a recent address at the Future of Finance Forum in Singapore, Reserve Bank of India (RBI) Governor Shaktikanta Das shared optimistic insights regarding India’s economic outlook. Das stated that India has the potential to achieve a growth rate of at least 7.5 percent, surpassing the RBI’s own estimate of 7.2 percent for the current financial year.
During his keynote speech organized by the Bretton Woods Committee in collaboration with Swiss bank UBS, Das emphasized that India is poised for strong growth, driven by private consumption and investments. Despite facing a slowdown in the April-June quarter of 2024, where growth fell to 6.7 percent year-on-year, he maintained a balanced perspective on the country’s economic forecasts, supported by solid macroeconomic fundamentals.
Das also addressed concerns about inflation, noting that it has improved from a peak of 7.8 percent in April 2022 down to within the RBI’s targeted band of 4 percent. For the current fiscal year, the RBI projects inflation to decrease to around 4.5 percent, anticipating further stabilization in the following year.
While acknowledging a decline in merchandise export growth due to weaker global demand, Das pointed out the positive trend in services exports and the importance of fiscal consolidation in maintaining economic stability.
Overall, the insights from Shaktikanta Das reaffirm India’s potential for robust economic growth amidst global uncertainties.
Stay tuned for further updates on India’s economic developments and the RBI’s strategic outlook.
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What did the RBI Governor say about India’s growth potential?
The RBI Governor stated that India has the potential to grow at more than 7.5%. -
Why is this growth potential important?
A high growth potential can lead to more jobs, better living standards, and improvement in the economy overall. -
What factors contribute to this growth potential?
Key factors include increasing investments, a young population, and government reforms to support businesses. -
How does this growth potential compare to other countries?
India’s growth potential is higher than many other countries, making it an attractive place for investors. - What could affect India’s growth in the future?
Challenges like global economic conditions, inflation, and political stability can impact India’s growth potential.
