Indian economy likely to grow at 7% in FY24, inflation to ease: RBI governor

NEW DELHI: Reserve Bank of India (RBI) governor Shaktikanta Das praised the structural reforms undertaken by the government in recent years and said that the Indian economy is likely to record a growth of 7 per cent in the next fiscal.
The RBI governor said the structural reforms have accelerated the medium and long-term growth prospects of the Indian economy.
Shaktikanta Das stressed that amid an adverse global macroeconomic environment, India presents a picture of growth and stability, adding to his statement the governor assured inflation is likely to ease further.
Speaking at a CII session on ‘High growth, low risk: The India story’ in Davos during the World Economic Forum (WEF) Annual Meeting, Das said recent information on the global economic front has been reassuring with inflation falling, even though growth remains low.
“Chances of soft landing have improved and markets have reacted positively. However, geopolitical risks and climate risks remain matters of concern,” he said.
The RBI governor said the real GDP growth in India is expected at 7.2 per cent this year.
The Central Bank last month raised the GDP growth forecast for FY24 to 7%, while keeping the repo rate unchanged.
Previously speaking at a session of the World Economic Forum (WEF) in Davos, Das said there is a lot of international confidence in India and the macroeconomic and financial sector stability that the country offers. “…I think we need to really look back at the business opportunity in India.
Because this is the right time to build into the Indian ecosystem,” he said and emphasised that the country’s growth prospects are very good on account of the structural reforms that have taken place in recent years. Despite various shocks and crises, he said the Indian banking sector has seen a remarkable recovery.
“The Indian banking sector is perhaps at one of its best in recent years… the financial sector is very stable… the external sector is also stable notwithstanding that the global growth is slowing down…India’s services sector is growing,” he said.
(With PTI inputs)

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