Indian Economy Set For Stable Growth Spurt, Says RBI Expert
The Indian economy appears poised for a stable period of high growth according to a key figure from the Reserve Bank of India's monetary policy committee. Shashanka Bhide commented that both domestic demand and investment are strong, backed by steady inflation and steady rainfall. This aligns the nation for sustained momentum over the coming years.
Bhide notes domestic activity remains robust thanks to rising incomes fueling consumer spending alongside high investment levels seen recently. Both factors are priming production and supply to match the economic activity. The expert also stresses India is well placed given risks in the global environment like conflicts slowing trade.
Official estimates place 2023-24 expansion at a hearty 8.2%, building on the last fiscal year's 7% growth. The RBI also forecasts a still robust 7.2% pace for 2024-25. Bhide highlighted the crucial role normal monsoon rains will play in supporting agriculture as well as easing food price pressures. While external demand depends on worldwide recovery, sizable financial inflows indicate India's competitive strengths.
On inflation, the panel member said concerns involve weather disruptions, global supply chain issues and lagging international recovery. However, ebbing overall consumer price inflation to below 5% in recent months combined with policy rates suggests mounting real interest rates. Still, vigilance over food costs and maintaining multi-year price stability targets are priorities.
