‘India’s growth potential is above 7.5%’: RBI Governor Shaktikanta Das | Economy & Policy News

At a global conference in Singapore on Friday, Reserve Bank of India Governor Shaktikanta Das stated that India has a growth potential of at least 7.5%. This estimate of growth for the current fiscal year, FY25, is little higher than that of the Reserve Bank of India.

In his speech at the annual Future of Finance Forum of the Bretton Woods Committee, Das stated: “I believe India’s potential growth today… is about seven and a half percent-plus.” In association with the Swiss bank UBS, the forum was held in Singapore, according to the Reserve Bank of India.

वैश्विक वित्तीय स्थिरता; जोखिम और अवसर
On September 13, 2024, at the Future of Finance Forum 2024, hosted by BWC, Singapore, Shri @DasShaktikanta, Governor of the Reserve Bank of India, will deliver the keynote address, “Global Financial Stability: Risks and Opportunities.”The URL is t.co/MfsdkemcvS.

Sept. 13, 2024, ReserveBankOfIndia (@RBI)

“This year, we expect at the end of the year to record 7.2 per cent,” Das stated. India’s GDP grew at a sluggish annual pace of 6.7% during the April–June quarter. The lower government spending as a result of the Lok Sabha elections was the reason behind this. The Reserve Bank of India had projected a rate of 7.1%, however the actual rate was lower.

“There is a balance of risks around growth forecasts.”

According to Das, the risks associated with growth projections are manageable and backed by solid macroeconomic fundamentals, with investment and private consumption acting as the main catalysts.

“We still have a ways to go and cannot afford to look the other way, but inflation has moderated from its peak of 7.8% in April 2022 into the tolerance band of around the target of 4%,” he continued.


The Reserve Bank of India has forecasted a drop in inflation to 4.5% for the current fiscal year. Additionally, it predicted that, under typical monsoon conditions and the absence of any external or governmental shocks, the average inflation rate will drop to 4.1% in the upcoming fiscal year (FY26).

Das pointed out that although exports of services have grown, the rise in exports of goods has lagged behind forecasts because of a decline in foreign demand. In addition, he emphasized that a balanced growth forecast was supported by the advancement of fiscal consolidation, a reduction in the national debt, and enhanced company performance.

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