Indian Economy Poised for Growth Amid Reforms and Stability

Reserve Bank Governor Shaktikanta Das highlighted the resilience of the Indian economy, emphasizing robust consumption and investment demand. He called for further reforms in land, labor, and agricultural markets, and stressed the importance of tailored financial products for women and MSMEs. Das projected a balanced growth-inflation trajectory.

Reserve Bank Governor Shaktikanta Das affirmed the Indian economy's resilience during his speech at the annual FIBAC 2024 Conference. He noted that despite a moderation in the GDP growth rate to 6.7% in Q1 2024-25, the core growth drivers remain robust.

Das stressed the need for further reforms in land, labor, and agricultural markets, while highlighting the positive long-term outcomes of existing reforms like GST and IBC. He called on financial institutions to create tailored products for women and MSMEs to bolster inclusive growth without compromising underwriting standards.

Furthermore, Das projected the Indian economy to achieve a 7.2% growth rate for 2024-25, driven by private consumption and investment demand, and underscored the critical balance between inflation and growth.

(With inputs from agencies.)