Positive on GDP growth, working to bring inflation under control: RBI Governor Shaktikanta Das

RBI Governor Shaktikanta Das, speaking at the 188th AGM of the Bombay Chamber of Commerce & Industry in Mumbai, said that India is on the verge of a significant structural shift in its growth trajectory and is confident that GDP growth will touch 7.2% in the ongoing financial year.

“We are confident about 7.2 percent growth in the current financial year. Of course in any projection, in any forecast, there would be always risks to the upside and downside,” Das said.

Das further mentioned that India's GDP annual growth rate is moving towards 8%. "India is at the threshold of a major structural shift in its growth trajectory moving towards 8% GDP growth in a sustained manner. We are moving towards an annual growth rate of 8%..." he said.

Regarding inflation, he mentioned that at a 4 percent inflation rate, the economy, financial system, and growth drivers would be significantly strengthened.

He added that high inflation renders the economy uncompetitive and discourages both domestic and foreign investments, along with presenting several other drawbacks.

The RBI Governor further stated that the country's growth has been driven by multiple sectors. “A large country like this cannot depend on a single sector, whether manufacturing or services or export-led growth or whatever. It has to be a multiple-sector-driven growth story for India... In the agriculture sector, a lot of achievements have been made, but I think there is still a lot of work to be done in the agricultural sector, especially with regard to the improvement of the supply chains and the value chain framework...,” Das added.

RBI Governor also emphasized that GST is one of the most significant structural reforms since 1947, making business operations much more convenient.

“Among the structural reforms at the forefront, I would like to mention the goods and services tax, the GST, about which a mention was made...GST has been one of independent India's biggest structural reforms...I am happy to mention that in India, the GST has stabilised much faster than in many other countries... Today per month collections under GST have touched ₹1.7 trillion...The business has become much more convenient.. and the costing of business has become much more efficient and competitive together,” he said.