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.
The current official estimate of GDP growth in 2023-24 is 8.2 per cent, accelerating from 7 per cent in the preceding year.
Earlier this month, the Reserve Bank of India 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.
While noting that improvement in global demand conditions are necessary to spur external demand for goods and services, he said sizable capital inflows supporting investment, reflect both the supply side efficiencies and high growth potential of the economy both in terms of domestic demand as well as India’s exports.