Chief Economic Adviser V Anantha Nageswaran confirmed on Saturday that the Indian government and the Reserve Bank of India (RBI) share the same projection for the country’s Gross Domestic Product (GDP) growth rate in the current financial year, expecting it to be 6.5 percent.
The announcement came after RBI Governor Shaktikanta Das revealed the revised GDP growth forecast of 6.5 percent for 2023-24 at the conclusion of the Monetary Policy Committee (MPC) meeting on Thursday. This figure is slightly higher than the previous forecast of 6.4 percent in April.
During a session organized by the Bharat Chamber of Commerce, Nageswaran stated, “Both the Ministry of Finance and the RBI are aligned in their growth projections for the current fiscal year, expecting it to be 6.5 percent with evenly balanced risks. The robust momentum of domestic economic growth should help overcome external risk factors.”
The agreement between the government and the central bank on the GDP growth forecast reflects a shared optimism about the strength of India’s economic recovery and its ability to withstand potential challenges from external factors.
The Indian economy has been gradually rebounding from the impact of the COVID-19 pandemic, with various sectors showing signs of recovery. The government’s emphasis on structural reforms, monetary easing measures implemented by the RBI, and successful vaccination campaigns have played significant roles in restoring economic stability.
The projection of a 6.5 percent growth rate signifies the potential for sustained expansion and showcases the resilience of India’s economy. It also demonstrates the confidence of policymakers in the country’s ability to navigate through potential risks arising from global economic conditions and uncertainties.
However, it is important to note that achieving the projected growth rate would require continued efforts and careful management of both domestic and external factors. The government and the RBI must maintain a proactive stance to support growth-oriented policies, enhance investor confidence, and ensure the implementation of reforms aimed at bolstering various sectors.
The alignment between the Ministry of Finance and the RBI regarding the growth forecast highlights the coordinated approach taken by the government and the central bank in formulating economic policies. This collaboration is crucial for fostering stability and providing a conducive environment for businesses and investors.
Furthermore, the emphasis on balanced risks indicates the recognition of potential challenges that could impact economic growth. It is essential to remain vigilant and proactively address any emerging risks to safeguard the positive momentum.
The consensus between the government and the RBI on the 6.5 percent GDP growth forecast for the current fiscal year reflects a shared understanding of the prevailing economic landscape and the measures required to sustain growth. By working in harmony, policymakers can strengthen India’s position as a resilient and dynamic economy in the face of evolving global conditions.
