RBI Governor: Despite global headwinds, India’s GDP growth surpasses 8% on robust domestic demand

New Delhi (The Uttam Hindu): Amid global economic uncertainties and geopolitical tensions, India has achieved a robust economic growth rate of over 8 per cent, Reserve Bank of India (RBI) Governor Sanjay Malhotra said at the annual meeting of the International Monetary Fund (IMF).

He said that India is a domestic demand-driven economy, so the US tariff dispute or the slowdown in global trade will have limited impact on the country's growth. Malhotra said that despite the effects of the COVID-19 pandemic and the Russia-Ukraine war, India has rapidly recovered and established a strong position on the global stage. He said that India's economic fundamentals are strong and it is capable of withstanding global shocks.

Inflation control and deficit containment:

The RBI Governor stated that India has succeeded in reducing inflation from 8 percent to 1.5 percent, the lowest level in eight years. He added that falling oil prices also played a key role in this.

Furthermore, India's fiscal deficit is under control, with the central government deficit projected to be 4.4 percent of GDP. Malhotra noted that India's total debt is among the lowest globally, and that this achievement was made possible by better coordination between the government and financial institutions. He added that while the US dollar depreciated by 10 percent, the Indian rupee did not decline as much. This is due to India's cautious policies and well-organized management of capital flows.

Malhotra stressed that rupee stability is India's priority. He added that India's capital markets are deep and robust, providing additional stability and resilience to the economy. Despite global uncertainties, India's policy stability, controlled inflation, and strong domestic demand have placed it at the forefront of emerging economies.