Inflation has largely moderated from summer highs of 2022: RBI Governor
Reserve Bank of India Governor Shaktikanta Das has said that the Indian economy can grow at the rate of seven percent in the next financial year 2024-25. Besides, inflation is expected to continue to moderate. Das said that the structural reforms undertaken by the government in recent years have boosted the medium and long-term growth prospects of the Indian economy. Amid the challenging global macroeconomic environment, India is setting an example of growth and stability. On the global economic front, inflation has declined but the growth rate remains low, he said at the CII session on 'High Growth, Low Risk: India's Story' organized during the annual meeting of the World Economic Forum.
Das said there is a possibility of progress without any hindrance and the markets have responded positively. However, international risks and climate risks remain. RBI Governor said that India's GDP (gross domestic product) growth rate is expected to be 7.2 percent in the current financial year. He said that with strong domestic demand, India remains the fastest growing major economy. We have emerged stronger from the recent global shocks. Das further said that external balance can be easily managed with strong foreign exchange reserves.
He said that 'headline inflation' has reduced significantly compared to the high level of summer 2022. This shows that our monetary policy actions and liquidity rebalancing are having an impact. The RBI Governor said core inflation has also declined sequentially, while the government's active supply-side interventions have also played an important role in cushioning the food price shock.
Das expressed hope that the average consumer price index-based inflation next year will be 4.5 percent and the RBI is committed and confident of achieving the target of four percent as soon as possible. He said that we hope that the Indian economy will grow at the rate of seven percent in 2024-25. The government has given the responsibility to the Reserve Bank of India to keep the retail inflation at four percent with a variation of two percent.
Published – January 18, 2024, 12:32 IST
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