New Delhi : In a statement made during the Bretton Woods Committee’s annual Future of Finance Forum in Singapore, Reserve Bank of India (RBI) Governor Shaktikanta Das projected India’s growth potential to be approximately 7.5 per cent or more.
This forecast slightly exceeds the RBI’s own full-year projection for 2024, which stands at 7.2 per cent.
Governor Das, speaking at the forum held in collaboration with Swiss bank UBS, emphasised that India’s economic potential remains robust.
Despite a modest start to the year, primarily attributed to subdued government expenditure during the national election period, the Indian economy is poised for significant growth.
Das’s optimistic outlook aligns with broader expectations that the country’s economic expansion will continue to outpace many global peers.
However, Das acknowledged that the road to achieving this growth potential has not been without hurdles. He noted that India’s merchandise exports have underperformed relative to expectations.
The slower-than-anticipated growth in exports is largely due to a decline in external demand, which has impacted global trade dynamics.
On a more positive note, Das highlighted that India’s services exports have shown marked improvement, counterbalancing some of the shortfalls in merchandise trade.
The forum, a key event for discussing global financial trends and economic outlooks, provided a platform for addressing these issues in detail. The partnership between the Bretton Woods Committee and UBS underscored the event’s significance in shaping financial and economic policies worldwide.
Das’s comments reflect a nuanced view of India’s economic landscape. While the country is on track to achieve a commendable growth rate by the end of 2024, there are challenges that require ongoing attention and strategic responses.
The disparities between merchandise and services export performance are particularly noteworthy, indicating areas where policy adjustments might be necessary to bolster trade and economic stability.
In summary, while India’s growth potential is robust and slightly exceeds current forecasts, the nation faces a mixed economic environment.
Continued efforts to address external demand issues and enhance the performance of merchandise exports will be crucial as India strives to reach and potentially surpass its growth targets for the year.
