📷 Image Credits: Moneycontrol
The Reserve Bank of India Governor, Shaktikanta Das, recently expressed optimism about India’s economic growth trajectory, stating that the momentum of economic activity continues to be strong. Speaking at the ET Now Leadership Dialogues on June 18, Das highlighted the robust growth in economic activities, citing it as the strongest in recent times.
Das further mentioned that the growth projection for the first quarter looks quite promising, indicating positive signs for the economy. The central bank had raised its projection for real GDP growth for the financial year 2024-25 to 7.2 percent, up from the previous estimate of 7 percent. Das shared that the GDP growth for the first quarter is anticipated to be around 7.3 percent, followed by 7.2 percent in Q2, 7.3 percent in Q3, and 7.2 percent in the last quarter.
Additionally, Das pointed out the recovery in private consumption and the increasing demand in rural areas, boosted by agricultural activities. He mentioned that the India Meteorological Department’s forecast is likely to enhance the Kharif output, providing a positive outlook for the agricultural sector.
Moreover, addressing the inflation scenario, Das acknowledged that while the Consumer Price Index (CPI) headline has softened in March-April, food inflation remains high. Despite this, he remained optimistic about the growth projections, emphasizing the expected 7.2 percent growth for the first quarter of the year, with prospects for even better performance.
The Governor’s confidence in India’s economic prospects reflects a positive sentiment in the financial landscape, indicating a hopeful trajectory amidst the current economic momentum.
