India Can Sustain 8% Growth Over Medium Term: RBI Governor
Date
9/17/2024 2:22:30 PM
(MENAFN- KNN India)
New Delhi, Sep 17 (KNN) India can sustain economic growth of up to 8 per cent over the medium term, according to Reserve bank of India (RBI) Governor Shaktikanta Das.
In an interview with CNBC on Sunday, Das also suggested that policymakers are not actively considering an interest rate cut in October, stressing that monetary policy decisions will be based on domestic conditions rather than influenced by the US federal Reserve.
India has held interest rates steady for over 18 months, with Das cautioning against premature rate reductions amid ongoing inflation concerns.
While inflation remained below 4 per cent for a second consecutive month in August, this was attributed mainly to statistical factors.
When asked about the possibility of a rate cut in October, Das responded, "No, I can't say that," indicating that the RBI is not leaning toward such a move at present.
Looking ahead, the RBI governor projected India's growth rate to hover around 7.5 per cent in the coming years, with potential upside.
Although growth dipped to 6.7 per cent in the last quarter from 7.8 per cent in the previous three months, Das remains confident that India's broader growth drivers are robust, sustaining a 7 per cent+ expansion trajectory.
Das reiterated remarks he made during a recent forum in Singapore, where he underscored India's resilience and strong growth fundamentals.
(KNN Bureau)
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