Indian Economy: RBI Governor Said – GDP Growth Rate Is Expected To Be 6.5 Percent

Indian Economy: RBI Governor said – GDP growth rate is expected to be 6.5 percent.

Reserve Bank of India (RBI) Governor Shaktikanta Das has expressed confidence that the economic growth rate will be 6.5 percent in the current financial year (FY24).

He said that we have estimated the growth rate after considering all aspects and we have every hope of achieving it.

He also said that even if the US Federal Reserve (Fed) raises the discount rate further, it is unlikely to affect the rupee exchange rate.

Also, better service exports will keep the current account deficit within a manageable range.

Growth above the IMF and Fitch ratings is expected.The RBI maintained its GDP growth forecast at 6.5% in this month’s monetary policy review.

However, this is far above the 5.9% economic growth rate projected by the IMF in April this year.

At the same time, Fitch Ratings raised India’s GDP growth estimate for the current fiscal year to 6.3% in its latest estimate.

Indian Economy: RBI Governor said – GDP growth rate is expected to be 6.5 percent, RBI’s Balanced Position on GDP Growth.

“We are taking a realistic approach to GDP growth,” said Das. Anyway you infer that there are both positive and negative risks.

Putting all of this together, we took a measured approach and based on that, we estimate economic growth at 6.5% for the current fiscal year, and we are very optimistic about that.
Fluctuations in the ruble exchange rate are very insignificant.

The economic growth rate for 2022-23, the last fiscal year, was higher than expected at 7.2%.

When asked about rupees, Das said: “The exchange rate of the rupee against the dollar has been very stable since Covid.

Looking at the numbers from January this year to now, the rupee’s volatility is very small.

In fact, there was a slight bullishness in the rupee. Efforts are made to avoid excessive fluctuations in the rupee-to-dollar exchange rate.

Ruble stabilizes after Fed rate hike.

“The US Federal Reserve (Fed) raised interest rates by 500 basis points (5%), and even then the rupee remained fairly stable,” he said.

Therefore, it is a positive sign of confidence that the Indian rupee is stable for both domestic and foreign investors. Central banks focus on stability.

Even if the Fed raises the discount rate further, it is unlikely to affect the rupee exchange rate.