RBI Governor Shaktikanta Das Confident in Sustainable Growth Amid High Interest Rates

Reserve Bank Governor Shaktikanta Das stated that high interest rates are not hampering growth and emphasized that the focus will be on controlling inflation. He indicated that India's growth trajectory is poised for a major shift, expecting an 8% real GDP growth rate sustained yearly.

Reserve Bank Governor Shaktikanta Das on Tuesday assured that the currently high interest rates are not hindering economic growth, emphasizing that the monetary policy will concentrate unambiguously on reducing inflation going forward.

Addressing the Bombay Chamber of Commerce and Industry, Das stated that India is on the brink of a major structural shift in its growth trajectory. He projected the possibility of sustaining an 8% real GDP growth annually. Das affirmed that the growth momentum continues monthly, countering concerns about high interest rates stalling progress.

Das underlined that initial forecasts from the RBI indicate a GDP growth of 7.4% in the June quarter, surpassing the bank's own estimate of 7.3%. He conveyed confidence in achieving an annual growth rate of 7.2% for FY25. Highlighting the importance of maintaining low inflation, Das drew a parallel with chess, suggesting that a single adverse event could derail the progress. He reiterated that lower inflation supports sustainable growth and fosters an attractive economic environment for investments.

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