RBI Governor: The Indian economy has recovered from the severe crisis caused by the COVID-19 pandemic and its average real gross domestic product (GDP) growth rate during 2021-24 has been more than eight percent. For the current financial year (2024-25), the Reserve Bank of India (RBI) has projected the real GDP i.e. the growth rate at base price to be 7.2 percent. Reserve Bank of India Governor Shaktikanta Das said this on Friday about India's growth scenario. According to the governor, domestic factors like private consumption and investment are playing a major role in growth.

Inflation within a satisfactory range

Regarding inflation, Das said it has come down from the high of 7.8 percent in April 2022 to a satisfactory range of two to six percent, but "we still have a distance to go and we cannot afford to look the other way". The governor said the Reserve Bank's projections indicate that inflation may come down to 4.5 percent in 2024-25 and 4.1 percent in 2025-26. It was 5.4 percent in 2023-24.

He said that retail inflation based on the Consumer Price Index (CPI) remained below the Reserve Bank's average target of four percent for the second consecutive month in August at 3.65 percent. In July, it was at a five-year low of 3.6 percent. Fiscal consolidation continues and the level of public debt is decreasing in the medium term. The performance of companies has improved, which has reduced their debt and made strong growth possible due to profit.

recovered from covid period

Das said that the Indian economy has recovered from the severe crisis caused by the Kovid-19 epidemic and its average real gross domestic product (GDP) growth rate during 2021-24 was more than eight percent. For the current financial year (2024-25), the Reserve Bank of India (RBI) has projected the real GDP growth rate i.e. at basic prices to be 7.2 percent. He said that this growth outlook shows the strength of India's macroeconomic fundamentals. In this, domestic elements - private consumption and investment - are playing a major role.