More Stories

Informist, Thursday, Sep 5, 2024

 

* Necessary to cut out noise about India's growth story 

* IMF, World Bank have been raising India growth forecasts 

* Our, global agencies' views on India's growth converging 

* Apr-Jun GDP data shows underlying drivers gaining momentum 
* Apr-Jun GDP lower than view due to muted govt expenditure 

* Agri growth likely to perform better in rest of FY25 

* More than 90% of Apr-Jun GDP components grew over 7%
* Our 7.2% FY25 growth forecast doesn't appear out of place 

* Structural drivers playing bigger role in India's growth

 

MUMBAI - Reserve Bank of India Governor Shaktikanta Das today hailed India's growth story, saying the central bank's projection for the current financial year started April remains achievable despite a lower than expected print in the first quarter.

 

"Much has been talked about it, much has been discussed about it. Various authorities have been giving out various numbers. So it is necessary to cut out the noise and to exactly analyse where exactly India's growth story stands and what is the outlook forward," Das said at the FIBAC 2024 banking conference here.

 

Data released last week by the statistics ministry showed India's GDP grew by 6.7% in Apr-Jun as against the RBI's own view of 7.1%. However, Das brushed off any concerns, saying more than 90% of the GDP components grew at a rate of over 7% in Apr-Jun.

 

"...the data shows that the fundamental growth drivers are gaining momentum. This gives us confidence to say that the 

Indian growth story remains intact," Das said in his speech.

 

Das' comments come after the lower than expected growth number led to some downward revisions in India's growth forecast for the year. Nomura, for instance, cut it's growth forecast for the year by 20 basis points to 6.7?rlier this week.

At the same time, multilateral organisations have improved their view of India, with the World Bank raising its forecast to 7.0% this week - in line with that of the International Monetary Fund.

 

"So, the projections made by international agencies as well as the Reserve Bank, I think our perceptions and projections are converging... Overall, the Reserve Bank's projection of GDP growth at 7.2% for 2024-25 does not appear out of place," the governor said.  End

 

Reported by Siddharth Upasani and Kabir Sharma

Edited by Vandana Hingorani 

 

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

 

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2024. All rights reserved.