RBI Governor Shaktikanta Das expressed optimism regarding the economic growth for the current financial year, suggesting it could approach 8 percent based on the recently released third-quarter GDP data by the government.
According to the National Statistical Office (NSO), the October-December quarter is projected to witness growth of 8.4 percent. Furthermore, the NSO has revised its GDP estimates for the first and second quarters upward to 8.2 and 8.1 percent, respectively, from the earlier figures of 7.8 percent and 7.6 percent.
In an interview with ET Now, Governor Das highlighted the overall positive performance of the economy, citing improvements in fiscal consolidation, current account deficit, and the price situation.
Observing the momentum of economic activities in the first week of March, Governor Das expressed confidence that the initially estimated 7.6 percent growth rate for the current year could be surpassed.
Initially projected at 5.9 percent for the January-March quarter, it's now believed that the GDP might exceed this figure, consequently pushing the annual growth rate beyond 7.6 percent for 2023-24.
Governor Das underscored the positive trajectory of high-frequency indicators and economic momentum, suggesting that the 5.9 percent growth estimate for Q4 might be surpassed. This, in turn, could bring the overall GDP number for the current year very close to 8 percent.
Regarding inflation, Governor Das noted that the latest inflation figure stands at 5.1 percent, which is still 110 basis points away from the target of 4 percent. However, he emphasized that inflationary trends are on the decline, and the RBI's focus remains on achieving the target of 4 percent inflation on a sustainable basis.
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