Reserve Bank of India Governor Shaktikanta Das on Thursday affirmed that India’s growth trajectory is steady, with both consumption and investment demand rising. Speaking at the FIBAC 2024 conference, jointly hosted by FICCI and IBA, Das highlighted the need for reforms in land, labour, and agricultural markets to sustain this momentum.
"The Indian growth story remains intact," Das said, citing strong private consumption, which has rebounded to 7.4%, and the National Statistical Office’s (NSO) estimate of 6.7% GDP growth for Q1 2024-25. He added, "This gives us confidence to say that the Indian growth story remains intact."
Das noted that government spending had moderated in the first quarter due to upcoming elections but emphasised that the Reserve Bank’s projection of 7.2% GDP growth for the fiscal year remains achievable.
He also reflected on the importance of a "multi-sectoral approach" to growth, stating that past reforms such as the Goods and Services Tax (GST) and the Insolvency and Bankruptcy Code (IBC) have yielded long-term benefits.
While optimistic about India’s growth, the governor acknowledged challenges on the inflation front. "It is the headline inflation that matters," he said, attributing recent volatility to food prices. However, he expressed optimism that a good monsoon and improved Kharif harvest could temper inflation later in the year.
On financial inclusion, Das called for tailored financial products for women and micro, small, and medium enterprises (MSMEs), without compromising underwriting standards.
He urged the financial sector to bridge gender gaps, noting that India’s female labour participation remains below the global average. "The financial sector has a crucial role to play in bridging this gender gap," he stressed.
Das concluded by highlighting the need for holistic development, emphasising that GDP alone does not define progress. "A truly developed India must ensure that every citizen, regardless of their socio-economic status, has access to financial services," he said.
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