Indian economy expected to grow at 7.3% in current fiscal, says RBI Governor at World Economic Forum in Davos

Last Updated: Jan 17, 2024

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RBI Governor Shaktikanta Das stressed that according to the first advance estimate, released by the National Statistical Office (NSO), India’s economy is expected to grow at 7.3 percent in FY2024. He said this at a chat as part of World Economic Forum (WEF) in Davos, Switzerland. Mr Das said that India’s growth momentum will be maintained in the future years. He said that durable signs of India’s growth momentum being maintained are visible. He said, it is not a one-off comment but is based on a lot of ‘in-house’ research and analysis. Mr Das informed that after a contraction of 5.8 percent in FY2021, the Indian economy grew by 9.1 percent in FY2022 and 7.2 percent in FY2023. Notably, global rating agency Fitch Ratings affirmed India’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at ‘BBB-’ with a stable outlook.

In the chat which was organised by Invest India, he said that Inflation has come under control and is within the band we have, which is 2 percent to 6 percent. He added that RBI remains fully committed to bring inflation down to the target of 4 percent. Core inflation has started steadily coming down and gives confidence that monetary policy is working, he added.

RBI Governor further said, this is an opportune time for investors to invest in India. He said that there is a lot of international confidence in India, the technology story built around India, the growth prospects of India and the macroeconomic and financial sector stability that India offers.

RBI Governor said that India’s efforts towards globalising the rupee are not intended to replace the dollar. He said that India has embarked on internationalisation of Rupee because dependence on one currency for global trade was risky and subjected the economy to the currency volatility. He said that the dollar will continue to be the dominant currency.

RBI Governor said that the Indian banking sector has made a remarkable recovery. He pointed that the RBI has taken a lot of steps to improve the governance in the public and private sector banks, strengthening the regulatory architecture around the non-banking finance companies.

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