RBI Governor Shaktikanta Das on India's Economic Slowdown and Future Projections

India's economic growth slowed to 6.7% in the April-June quarter due to reduced government spending linked to election protocols. RBI Governor Shaktikanta Das remains optimistic about future growth, citing good monsoon and reforms. He highlighted the criticality of quality audits and RBI's role in maintaining price stability.

India's economic growth decelerated to 6.7% in the April-June quarter, the slowest in 15 months, primarily due to reduced government expenditure as a result of election-related protocols, stated RBI Governor Shaktikanta Das on Saturday.

Initially, the RBI had forecasted a 7.1% growth rate for the first quarter of this fiscal year. However, data from the National Statistical Office revealed a lower figure of 6.7%, Das noted.

Despite this slowdown, key growth components such as consumption, investment, manufacturing, services, and construction have registered more than 7% growth. The slowdown is attributed to lower government and agricultural spending, but optimism remains high for the coming quarters.

(With inputs from agencies.)