New Delhi. India is in a position to achieve high economic growth rate for the next decade. The ground for Indian economy has been prepared due to the very strong position of banks and corporate world, efforts being made to improve the quality of government expenditure, prudent monetary and fiscal policies as well as soft inflation.

In such a situation, taking advantage of its demographic positive situation (large population of people of the labor force age group) and being competitive, India can fulfill its aspirations of rapid economic growth for a decade. This was stated in the RBI's annual report 2023-24 released on Thursday.

The report said that during the last financial year, despite extremely unstable global conditions, India's economy has shown stability and strength.

India's growth rate accelerates

In the report, the way India has achieved a rapid growth rate of more than seven percent continuously in spite of global instability during the last financial year is considered a big sign. India has grown at a pace of seven percent or more continuously for the last three years.

The World Bank and IMF reports show that India's growth rate will remain the fastest among the world's major economies in 2025 and 2026. Also, there is nothing particularly worrying about the inflation situation. But in the coming years, the biggest obstacle in the way of development possibilities can come from the rapid use of technology like Artificial Intelligence, Machine Learning and deteriorating weather. But these problems will remain only in the medium term.

The level of the country's foreign exchange reserves is sufficient to protect the domestic economy from global storms. The country's financial sector also looks very strong and the RBI is ready to make it more robust.

The condition of agriculture and rural economy improved

The condition of agriculture and rural economy is looking good during the current financial year. The implementation of Garib Kalyan Anna Yojana for five years has also strengthened the food security situation in the country. The situation of employment generation will also improve this year as the effect of the PLI scheme launched by the government will start showing. These schemes will increase the demand for labor and domestic demand will also improve.

On this basis, it has been said that India will achieve a growth rate of seven percent in the current financial year 2024-25. Regarding inflation, the report says that it has been 5.4 percent on average in the last financial year, which will be further reduced in the current financial year. The inflation rate may be 4.5 percent in the year 2024-25. RBI is trying to bring it to the level of four percent.

This report states that RBI's balance sheet has increased by 11.08 percent during the last year. Now it has become Rs 70.48 lakh crore (845 billion dollars). This is almost two and a half times more than the size of the economy of neighboring country Pakistan which is 340 billion dollars.