'India's growth potential is above 7.5%': RBI Governor Mr. Shaktikanta Das

Reserve Bank of India (RBI) Governor Mr. Shaktikanta Das projected India's growth potential to be over 7.5%, slightly higher than the RBI's current estimate of 7.2% growth for FY25. Speaking at the Bretton Woods Committee's Future of Finance Forum in Singapore, Mr. Das noted that while India's growth in the April-June quarter slowed to 6.7% year-on-year due to decreased government spending during the Lok Sabha elections, the country's strong macroeconomic fundamentals, driven by private consumption and investment, support balanced growth forecasts.

Mr. Das highlighted that inflation has moderated from its peak of 7.8% in April 2022, moving closer to the RBI's target of 4%, with a projected decrease to 4.5% in FY25 and further easing to 4.1% in FY26, assuming no significant external shocks. While services exports have risen, merchandise exports have been impacted by weak external demand. He also emphasized progress in fiscal consolidation, public debt reduction, and improved corporate performance as key factors contributing to a stable economic outlook.

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