India's Growth Story Remains Unharmed, Says Shaktikanta Das.(Image: X @RBI)

RBI Governor Shaktikanta Das said on Thursday that the Reserve Bank has projected a growth rate of 7.2% in India for the current financial year while attending the Federation of Indian Chambers of Commerce and Industry (FICCI) and Indian Banks’ Association’s (IBA) FIBAC. He stated that the Indian Monitory Fund (IMF) has also projected India’s growth prospect in the year 2024. He affirmed that India’s growth trajectory is stable and will remain strong as the key economic factors are gaining momentum in India.

“Data shows that the fundamental growth drivers of the economy are gaining momentum. This gives us the confidence to say that the Indian growth story remains intact,” Shaktikanta Das said.

He also pointed out that the economy has had a major and strong recovery from the coronavirus pandemic reversals as the current year projects 7.2% growth in the Indian economy. The World Bank has also guage a growth rate of 7% in the 2024-25 fiscal year. Das highlighted that the National Statistical Office (NSO) forecasted a GDP growth rate of 6.7% in the early quarter of this year.

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Speaking at the inaugural session, Das stated that India is progressing toward an advanced economy which is supported by a unique blend of various factors including robust democracy, a young and dynamic population and a rich tradition of entrepreneurship and innovation. He noticed that the projections and perceptions made by international agencies, as well as the Reserve Bank are converging.

Das highlighted that India’s economic growth is accelerating with private consumption, contributing 56% to GDP  growing at 7.4% in the first quarter of this year which has risen from 4% in the previous half-year. He added that it signals a resurgence in rural demand. On the other hand, the Investments which account for 36% of GDP likely to grow at a steady 7.5% and over 90%  which are combined by the investment and private consumption of GDP expanding at a sturdy gait.

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