India’s economy is showing no signs of slowing down, with the Reserve Bank of India’s Monetary Policy Committee (MPC) member Shashanka Bhide exuding confidence that the country can sustain a robust 7% growth rate in the current fiscal year and beyond.
Bhide says that owing to favorable monsoons, high agricultural productivity, and an improving global trade environment, India can maintain a 7% growth rate in the current fiscal year and beyond. This boost comes on the heels of India’s impressive performance in the manufacturing and infrastructure sectors during the previous financial year 2023-24, which propelled economic growth close to 8%.
“With conducive conditions on multiple fronts, India is well-positioned to maintain a 7% growth trajectory not just in 2024-25 but also in the subsequent years,” Bhide said.
The RBI official’s comments align with the upward revision of India’s growth forecasts by leading international agencies in recent months. The International Monetary Fund (IMF) raised its 2024 GDP growth projection for India to 6.8%, citing robust domestic demand and a growing working-age population. Similarly, the Asian Development Bank (ADB) pegged India’s GDP expansion at 7% for the current fiscal year.
However, Bhide cautioned that global economic uncertainties could pose challenges. “The pace of recovery in global demand remains sluggish, and persistent supply chain disruptions could upset the demand-supply balance, risking inflationary pressures,” he said.
Additionally, Bhide emphasized the need to brace for the potential impacts of natural calamities like floods or droughts, which have historically affected agricultural output. “We must be prepared to mitigate such shocks to ensure sustained economic growth,” he added.
Earlier RBI Governor Shaktikanta Das said India continues to be the fastest-growing major economy in the world, supported by an upturn in the investment cycle and revival in manufacturing. The services sector continues to grow at a strong pace.
India is set to remain the fastest-growing among major economies in 2024, according to the International Monetary Fund’s latest World Economic Outlook.
(Inputs from ANI)