The RBI Governor has given a pretty upbeat assessment of India's growth prospects:
India can achieve sustainable economic growth of up to 8% over the medium term, according to the country’s central bank governor.
His comments come shortly after data showed India’s gross domestic product slowed to 6.7% in the second quarter, down from 8.2% when compared to the same period last year. The figures have ratcheted up pressure on the central bank to launch its own rate-cutting cycle sooner rather than later.
Speaking to CNBC’s Tanvir Gill Friday in an exclusive interview, Reserve Bank of India (RBI) Governor Shaktikanta Das said he expects a growth rate over the next few years of 7.5% for India, “with upside possibilities.”
The Chief Economic Advisor has indicated that a medium-term growth rate of 6.5-7 per cent. Most people make a higher growth rate than that conditional on a slew of reforms.
If, however, the Indian economy can grow at 7.5 per cent in the coming years on present steam, that would be most reassuring to the government. It certainly changes the fiscal outlook quite a bit.
No comments:
Post a Comment