Reserve Bank of India (RBI) Governor Shaktikanta Das on Saturday expressed confidence that India will remain the fastest-growing major economy in the financial year 2022-23 with an estimated growth rate of 7 percent. Das, at the HT Leadership Summit 2022, emphasized that the country’s economy remains resilient with the support of the banking and non-banking sectors.
The whole world has faced many setbacks, he said. I call these three jerks. First the COVID-19 pandemic, then the war in Ukraine and now the financial market turmoil. The RBI Governor said that the volatility in the financial market is mainly arising out of tight monetary policy by central banks across the world. Emerging economies, including India, are suffering indirect losses, especially due to the developed countries.
He further said that in such constant turmoil, the European Union is facing a situation of economic recession, but there are chances that it will survive it. The situation in the US is stable but there are other countries where economic growth has slowed down.
Das said, as far as India is concerned, our overall macro-economic fundamentals remain strong. Banking or non-banking sector is stable due to all parameters with respect to lenders. In the current context, the growth figures are looking good, he said. We estimate that India’s economy will grow at a rate of about seven percent.
IMF has predicted that India’s economic growth rate in the current financial year will be around 6.8 percent. These figures place India among the fastest-growing major economies of the world. However, the RBI chief said that there is a big challenge before India in terms of inflation.
It may be noted that retail inflation rose to 7.4 percent in September as against 7 percent in August. The increase was due to a rise in the prices of food and energy products.