Reserve Bank of India Governor Shaktikanta Das stated that India’s economic growth in recent years has been primarily driven by strong domestic demand, and the country is expected to continue being one of the fastest-growing large economies in 2023. The Governor made these remarks during the opening plenary address at the Summer Meetings organized by Central Banking in London, UK.
Das highlighted that the Indian economy has experienced rapid progress and has gradually integrated with the global economy over the years. He mentioned that India’s growth in recent years has been fueled by robust domestic demand, particularly in terms of private consumption and investment, despite the global slowdown. Excerpts from his speech were shared by the RBI.
Looking ahead, Das anticipates India’s real GDP to grow by 6.5 percent in the fiscal year 2023-24. He stated, “In all likelihood, India will remain among the fastest-growing large economies in 2023.” According to the provisional estimates released by the National Statistical Office (NSO) recently, the real GDP growth for 2022-23 stood at 7.2 percent, surpassing the projected 7 percent.
Despite global challenges and tighter domestic monetary policy, various international agencies have forecasted India to be one of the fastest-growing economies in 2023-24, supported by strong growth in private consumption and a sustained increase in private investment.
Additionally, Das discussed regulatory and supervisory initiatives, stating that the latest supervisory data indicates that all banks meet the necessary prudential requirements. He added, “Stress tests also indicate that even under severe stress conditions, Indian banks will be able to meet the minimum requirements.”
