Davos 2024: Inflation Will Fall Close To RBI Tolerance Band By Next Fiscal, Says Shaktikanta Das
Monetary policy measures, aided by supply-side interventions by the government, have brought inflation down steadily, he says.
India will see real GDP growth of 7% next fiscal, while inflation will continue to moderate closer to the tolerable 4% mark, according to Reserve Bank of India Governor Shaktikanta Das.
"India has recovered from the recent volatility and uncertainty as a result of the health crisis (the COVID-19 pandemic), followed by geopolitical turmoil," Das told NDTV's Vishnu Som on the sidelines of the World Economic Forum 2024 in Davos.
India's macro stability is better than that of other countries and the financial sector remains resilient, he said, terming it an "outlier" amid a global growth slowdown.
"We expect real GDP growth of 7% next fiscal. The momentum of economic activity is very positive and will be maintained next year and beyond. India has entered into a period of growth long haul," he said.
Das expects inflation to average 4.5% next year, close to its tolerance level. Monetary policy measures, aided by supply-side interventions by the government, have brought inflation down steadily, he said.
"Aggregate demand conditions remain positive, and investment has started picking up, backed by high government and private sector capex. Agriculture is also expected to do better next year," Das said.
India is well-placed to handle global challenges, the RBI Governor said, referring to the Red Sea crisis.
Drawing attention to India's fintech space, Das said the central bank's digital rupee and the UPI platform has garnered global interest.
