Indian Economy News

Indian economy to grow at around 6.5% in FY24, says NITI Aayog member Mr. Arvind Virmani

According to a member of the NITI Aayog, Mr. Arvind Virmani, the Indian economy will expand at a rate of about 6.5% in the current fiscal year, despite rising geopolitical tensions and high oil prices.

He believes that the banking crises in the US and Europe would have no bearing on the Indian financial system.

The World Bank and the Asian Development Bank recently forecasted that Indian economic growth could slow to 6.3% to 6.4% due to a slowdown in consumption and tough external conditions.

In response to a query about the Reserve Bank of India's flexible inflation targeting, Virmani stated that "We should be more like the US Federal Reserve, which has an inflation target but also takes account of GDP ".

The government has directed the central bank to maintain retail inflation based on the consumer price index (CPI) at 4% with a margin of 2% on either side.

According to Mr. Arvind Virmani, India does not pursue an asymmetric policy and can expand at a rate of 6.5-7% without engaging in unfair trade practices.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.