RBI Chief Shaktikanta Das Expects Real GDP to Reach 7% at Davos
In an exclusive interview with NDTV at the World Economic Forum in Davos, Reserve Bank of India (RBI) Governor Shaktikanta Das stated that the Indian economy is expected to achieve real GDP growth of seven percent next year. Despite facing challenges such as the pandemic and geopolitical tensions, Das credited the country’s stable macroeconomic foundation for navigating through the turmoil.
Das emphasized that the RBI remains vigilant in monitoring inflation, which breached the central bank’s target bands during the initial months of the Ukraine crisis. However, he expects inflation to continue moderating towards the target of four percent.
Highlighting India’s resilience, Das stated that the country has recovered from recent volatilities and uncertainties, emerging stronger than before. He expressed optimism regarding the GDP growth figure, referring to the National Statistics Office’s advance estimates of 7.3 percent for FY 2023/24, an increase from the RBI’s previous forecast of 6.5 percent. The manufacturing sector is expected to drive this growth, expanding by 6.5 percent year-on-year.
Looking ahead to FY 2024/25, Das expressed confidence in India’s growth prospects, citing a positive macroeconomic situation and momentum from various activities. He mentioned the positive outlook for aggregate demand, investment activities, and agriculture.
Das also addressed inflation levels, noting the effectiveness of monetary policy actions by the RBI and supply-side measures taken by the government in bringing down headline inflation figures. He reiterated the RBI’s commitment to achieving the target of four percent inflation.
Furthermore, Das highlighted the significant growth of fin-tech start-ups, which has garnered global attention and investment. He mentioned the interest from global leaders and counterparts in India’s fin-tech initiatives, including digital payment systems such as the RBI’s digital currency and UPI.
The exclusive interview with Das at the World Economic Forum in Davos showcased India’s economic resilience and positive growth prospects.
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