New Delhi: RBI Governor Shaktikanta Das said on Friday that India's economic growth scenario reflects the strength of the country's macroeconomic fundamentals. He said that domestic elements like private consumption and investment are playing a major role in this. He said at the Future of Finance Forum 2024 organized by the Bretton Woods Committee, Singapore that the Indian economy has recovered from the severe crisis caused by the Corona epidemic and its average real gross domestic product (GDP) growth rate during 2021-24 was more than eight percent.

For the current financial year (2024-25), the RBI has projected the real GDP growth rate at base prices to be 7.2 per cent. Regarding inflation, Das said that it has come down from the high of 7.8 per cent in April 2022 to a satisfactory range of two to six per cent, but 'we still have a distance to go and we cannot afford to look the other way.'

The governor said the central bank's projections indicate that inflation may come down to 4.5 per cent in 2024-25 and 4.1 per cent in 2025-26. It was 5.4 per cent in 2023-24. He said, 'Retail inflation based on the Consumer Price Index (CPI) remained below the RBI's average target of four per cent for the second consecutive month in August at 3.65 per cent. In July, it was at a five-year low of 3.60 per cent.

Public debt levels are declining in the medium term

He said, "Fiscal consolidation continues and the level of public debt is declining over the medium term. The performance of companies has improved, which has reduced their debt and made strong growth possible due to profitability." The governor said that the book balance of banks and non-banking financial companies regulated by the RBI has also strengthened. He said, "Our tests show that these financial units will be able to maintain regulatory capital and cash requirements even in severe stress scenarios."

India's vision emphasizes international cooperation Das said that India's vision of global progress emphasizes international cooperation that is people-centered, ambitious, action-oriented and decisive. He said that India's G-20 presidency in the year 2023 and its continued contribution thereafter reflects New Delhi's vision of making the world 'one earth, one family and one future'.

Das said, 'These priorities include strengthening multilateral development banks (World Bank, International Monetary Fund) to address the common global challenges of the 21st century, promoting financial inclusion through digital public infrastructure, resolving debt for low and middle-income countries and financing the cities of the future.