India's GDP growth

DAVOS: RBI Governor Shaktikanta Das on Wednesday said that the Indian economy is likely to grow 7 per cent in the next financial year (2024-25) despite the global slowdown.

“Amid a challenging global macroeconomic environment, India presents a picture of growth and stability,” Das said at a CII session on the sidelines of the World Economic Forum meeting in Davos.

“The structural reforms undertaken by the government in recent years have boosted the medium and long-term growth prospects of the Indian economy,” he pointed out.

With a strong domestic demand, India remains the fastest growing major economy, he added

Das also said that inflation in India has come down from the high levels witnessed in the middle of 2022.

“Chances of soft landing have improved and markets have reacted positively. However, geopolitical risks and climate risks remain matters of concern,” he said.

A soft landing is a situation where the central bank does not go for a sharp increase in interest rates to control inflation in order to avoid choking economic growth.

He also said that India was in a comfortable situation as far as the external balance is concerned with robust foreign exchange reserves.

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