Shaktikanta Das, the governor of the Reserve Bank, has stated that low and steady inflation will create the foundation for long-term, sustainable economic growth. Recurrent shocks to food prices and resurgent geopolitical flashpoints are among the issues that make it difficult for policymakers to combat inflation, according to Mr. Das, who spoke yesterday at the 59th SEACEN Governors’ Conference in Mumbai.
He emphasized that India has become the largest economy in the world with the highest rate of growth after overcoming several obstacles. According to him, the Reserve Bank of India expects the Indian economy to grow by 7.0% in 2024–2025, which would be the fourth year in a row that growth has been at or above 7%. He said that India’s ability to successfully navigate these challenging times has been made possible by its prudent fiscal and monetary policies. According to Mr. Das, the RBI’s main factor in deciding on its bi-monthly monetary policy is the retail inflation rate, which is gradually getting closer to its 4 percent target. Effective fiscal-monetary cooperation, he continued, was the key to India’s prosperity.