India to maintain 7.2% GDP growth forecast despite Q1 fall

India’s first-quarter GDP growth was lower than expected at 6.7 per cent, but the Reserve Bank of India Governor, Shaktikanta Das remains bullish about achieving the projected full-year growth of 7.2 per cent.

Das highlighted that the fundamental growth drivers of the Indian economy are gaining momentum, supporting his optimism. He cited factors such as a good monsoon, increased rural demand, and government capital expenditure as key drivers for continued growth.

The central bank governor reiterated the RBI’s commitment to maintaining price stability to support sustainable growth. He stressed the need to navigate the remaining challenges in disinflation and preserve the credibility of the flexible inflation targeting framework.

Attribution: Reuters

Subediting: Y.Yasser