Sustained growth of 7% feasible for India: RBI MPC member, Mr. Shashanka Bhide

A member of the RBI Monetary Policy Committee (MPC), Mr. Shashanka Bhide anticipates India's economic growth to maintain a 7% trajectory and beyond in the fiscal year 2024-25, buoyed by favourable monsoon conditions, enhanced farm productivity, and improved global trade. Notably, the economy is expected to achieve nearly 8% growth in 2023-24, primarily driven by robust performances in the manufacturing and infrastructure sectors.

He underscores the necessity of productivity enhancements to ensure long-term stability in food prices. However, he warns of global challenges, such as slow demand recovery and supply chain disruptions, alongside geopolitical tensions, and extreme weather events, which could impede both demand and input prices. Despite these concerns, recent forecasts by the IMF and ADB paint a positive growth picture for India, with projections of 6.8% and 7% growth, respectively, supported by strong domestic demand and investment. Addressing persistent food inflation requires comprehensive strategies, particularly in mitigating the impact of weather conditions on perishable commodities like vegetables.

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