New Delhi, June 13 (IANS) | Reserve Bank of India (RBI) Governor Shaktikanta Das on Tuesday expressed confidence that India will be one of the fastest growing economies in the world in 2023, growing at 6.5 per cent in the current fiscal.
“We expect real GDP to grow by 6.5 per cent during 2023-24. In all likelihood, India will remain one of the fastest growing large economies in 2023,” the RBI governor said while delivering the opening plenary address at the Summer Meetings organized by the Central Bank in London.
He said the Indian economy displayed “exemplary resilience” after the pandemic and made a strong comeback from a contraction of 5.8 per cent in 2020-21 to a growth of 9.1 per cent in 2021-22 and 7.2 per cent in 2022-23. And a coordinated response of fiscal and monetary policies fostered a quick recovery.
He said that various structural reforms relating to banking, digitization, taxation, manufacturing and labor have been implemented in the last few years, which have laid the foundation for strong and sustainable growth in the medium and long term.
“The government’s continued thrust on capital expenditure is creating additional capacity and nurturing the much-needed revival in corporate investment,” he added.
Das stressed that the Indian economy has also made rapid gains in openness and has gradually integrated with the global economy over the years.
“As a result, it is increasingly exposed to global headwinds. However, it is pertinent to note that India’s growth over the past few years has been mainly driven by strong domestic demand, especially private consumption and investment, amid the global slowdown.
The RBI Governor further said that being proactive and agile during a crisis gives one the agility to respond swiftly to rapidly evolving developments.
“In this respect, our decisions at the height of the coronavirus crisis in 2020 and our liquidity rebalancing measures in 2021 served us well. Second, our measures have been judicious, targeted and calibrated as per the need of the hour.
“We are not bound by any existing dogma or orthodoxy. While lowering the floor and widening the interest rate corridor, we did not inject excessive liquidity or dilute our collateral standards. We kept in mind that What is being rolled out needs to be rolled back in a timely and non-disruptive manner,” he said.
“Third, we supported our monetary policy actions by appropriate regulatory and supervisory measures, including macro-prudential instruments, which strengthened policy effectiveness and its credibility.”
“Fourth, we provided guidance and confidence to the market and the wider public through effective communication as part of our effort to appropriately anchor expectations and sentiment. Thus, communication is an integral part of our overall policy response during the pandemic. became an additional pillar,” Das elaborated.
-IANS
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