Reserve Bank Governor Shaktikanta Das believes that India’s GDP growth will be 7% in the next financial year. Whereas the inflation rate will be around 4%.
Shaktikanta Das said, ‘India has now come out of the uncertainty and unstable conditions created by the health crisis (Covid) and the subsequent geo-political turmoil.’
He described India’s macro stability as better than other countries and said that the financial sector still remains strong. Despite slowing global growth, India’s growth remains an exception.
According to Das, ‘We expect 7% GDP growth in the next financial year. The pace of economic activities remains positive. This will continue next year and beyond. India has now entered a period of long-term development.
Inflation will remain near tolerance level: Shaktikanta Das
Das expressed hope that the inflation rate next year will be on an average 4.5%. This is close to the tolerance level of India. According to Das, supply-related interventions by the government have helped in reducing inflation.
Das said that ‘demand related conditions remain positive and the pace of investment is also picking up, which is getting the benefit of capex by the government and private sector. The agriculture sector is also expected to do better next year.
While reacting on the Red Sea crisis, Das said that India is fully capable of dealing with global challenges.
