RBI Governor Explains Slowing Economic Growth Amid Election Conduct

RBI Governor Shaktikanta Das attributes India's economic growth slowdown to 6.7% in the April-June quarter to lower government spending due to the model code of conduct for recent elections. Despite weaknesses in government expenditure and agriculture, other sectors saw over 7% growth, and better future growth is anticipated.

India's economic growth has decelerated to a 15-month low of 6.7% in the April-June quarter, largely attributed to reduced government spending enforced by the election model code of conduct, according to RBI Governor Shaktikanta Das.

The RBI had initially forecasted a 7.1% growth rate for this period. However, the National Statistical Office's data showed a decline. Despite this, sectors like consumption, investment, manufacturing, services, and construction still recorded growth rates exceeding 7%.

Das identified lower government expenditure and minimal agricultural growth as the primary factors dragging down the overall economic performance. He expressed optimism about future quarters, highlighting a positive outlook for the agriculture sector and expected increases in government spending.

(With inputs from agencies.)