India’s economic growth in F24 to be above 6 per cent on back of macroeconomic stability: RBI MPC member Ashima Goyal

India’s economic growth will be above 6 per cent in the current fiscal as the country has managed to strengthen its macroeconomic stability and performance even in a period of large global shocks, RBI Monetary Policy Committee (MPC) Member Ashima Goyal said on Monday.

Goyal further said that a global slowdown reducing India’s export growth, geopolitics fueling oil and food prices, and erratic weather are some of the continuing risks that the country faces. ”India has managed to strengthen its macroeconomic stability and performance even in a period of large global shocks. India’s GDP growth in FY24 will be above 6 per cent,” she told PTI in a telephonic interview. While GDP growth in 2022-23 was 7.2 per cent, lower than 9.1 per cent in 2021-22, the RBI projects India’s GDP to grow at 6.5 per cent in the current fiscal year. Asked when retail inflation will decline to RBI’s target of 4 per cent, the eminent economist said inflation expectations are getting anchored at around 4 per cent. ”For a long time now, firms’ inflation expectations are around 4 per cent. That means, despite cost shocks, their price increases do not exceed 4 per cent,” Goyal noted. Observing that core inflation is softening, she said inflation targeting is teaching price-setters to look through transient supply shocks.

Source: Devdiscourse