‘High GDP growth will continue this fiscal too’

The concerns are mainly in terms of the impact of risks from any adverse weather and climate events, disruptions in global supply chains due to international conflicts and the slow recovery of the global economy from the recent high inflation period - Shashanka Bhide, Member, MPC, RBI  

New Delhi: Indian economy is poised for potentially a stable high growth phase and it is also in a strong position in the context of significant risks that the country is facing, RBI’s Monetary Policy Committee Member Shashanka Bhide said on Sunday.

Bhide further said with the growth of income that would support domestic demand and additions to production or supply capacity reflected by high levels of investment spending in the last couple of years, domestic economic activity is expected to sustain its momentum.

“In terms of growth momentum and inflation trajectories, Indian economy is poised for potentially a stable high growth phase. It is also in a strong position in the context of significant risks that are also facing us,” he said in an interview.

The current official estimate of GDP growth in 2023-24 is 8.2 per cent, accelerating from seven per cent in the preceding year. Earlier this month, the Reserve Bank of India (RBI) pegged the GDP growth rate for FY25 at 7.2 per cent. Bhide noted that the monsoon rainfall, which is expected to be normal this year, is a significant positive factor for growth as well as bringing down food inflation. He noted that improvement in global demand conditions are necessary to spur external demand for goods and services.