Confident that growth will be close to 6.5 per cent in FY24: RBI Governor

“International agencies like the IMF have given lower projections (for India’s growth for FY24) and we have sort of shared our thoughts with the IMF. We are reasonably optimistic and confident that the growth will be close to 6.5 per cent (in FY24),” Das said after launching a book, Made in India, authored by Amitabh Kant, India’s G20 Sherpa and former CEO of NITI Aayog.

In December, the World Bank had revised its FY24 GDP forecast for India to 6.3 per cent from 6.6 percent. The IMF, too, has cut its GDP growth forecast for the country by 20 basis points to 5.9 per cent for this financial year.

Das said higher government capex of Rs 10 lakh crore, announced during the Union Budget, will support the growth.

According to the Governor, there are clear indications that the private sector investment has started picking up in various sectors, including steel, cement, petrochemicals.

Even the high frequency indicators are revealing that there is a good momentum on a month-on-month basis.

“Our analysis in the RBI shows that urban demand continues to be strong. Rural demand has started picking up and will get further support from excellent Rabi crops,” he said.

Talking about the rupee, the Governor said despite Covid and the impact of the Ukraine war, the RBI has ensured stability in the Indian currency.

“The rupee is the least volatile currency if you compare it with currencies of our peer countries. As a central bank, our effort has been to ensure that volatility in the Indian currency is contained,” Das noted.

Unless the currency is stable, domestic as well as foreign investors who are looking at India as an investment destination, will not feel confident to invest, he added.

Speaking to the industry captains, who were present at the book launch, Das said the private sector has to drive growth and investment, and lead the way forward.

The government’s role is to act as a facilitator who will provide an enabling environment for the private sector to play.
Kant, meanwhile, said if India is to grow at a rapid pace of 8-9 per cent over a three-decade period, the private sector has to play a key role.

“I am a long-term believer that both growth and employment creation is to come from the private sector,” he said.

Kant said the government must retreat from a vast range of areas and must simply be a good policymaker.