Over 7% GDP Growth Rate Possible: RBI Guv

The income-tax relief will not fuel inflation, but would support growth. Focus of the Budget on agriculture will help increase production of pulses, oilseeds and others and bring down food inflation - Sanjay Malhotra, Governor, RBI

Mumbai: Reserve Bank Governor Sanjay Malhotra on Friday said India can certainly achieve over seven per cent growth rate and the nation should aspire for that.

The Reserve Bank of India (RBI) in its bi-monthly monetary policy has projected 6.7 per cent growth for financial year 2025-26, up from 6.4 per cent estimated for the current fiscal.

“I would like to stick my neck out and say that, certainly India can achieve a 7 per cent and plus growth rate. We should certainly aspire for that,” he said when asked whether there was a possibility of the Indian economy growing at a faster pace.

Commenting on the Budget proposals of Finance Minister Nirmala Sitharaman, he said the income tax relief will not fuel inflation but would support growth. Sitharaman, announced an increase in the personal income tax threshold to Rs12 lakh, below which taxpayers owe no tax, up from Rs7 lakh.