According to RBI Governor, India can replace the global economy as a development engine

RBI Governor: Shaktikanta Das, governor of the Reserve Bank of India, stated on Thursday that India “can become the new growth engine for the world”.

“Our economy has continued to grow at a reasonable pace, becoming the fifth-largest economy in the world and contributing around 15% to global growth,” Governor Das stated at the beginning of his statement on monetary policy.

He stated that the country’s banks are still “healthiest in more than a decade” with historically high levels of capital, falling levels of non-performing assets, and improving profitability. He also claimed that India has made “significant progress” in containing inflation.

Overall, he stated, “India’s strong macroeconomic fundamentals have established the framework for sustained growth.” He stated that measures to ensure macro-financial stability must be continued while “pushing our growth frontier” further.

In the aftermath of geopolitical realignments and technological advancements, India is uniquely positioned to benefit from the continuing transformational developments in the global economy, according to Governor Das. India is a significant economy that is “marching ahead with vast domestic demand, untapped resources, and demographic advantages,” he continued.

Meanwhile, Governor Das announced that the Monetary Policy Committee of the RBI has agreed to retain the “withdrawal of accommodation” approach and keep the benchmark repo rate at 6.50 percent. The policy repo rate will remain at 6.50 percent, the MPC determined unanimously after careful consideration of all pertinent factors, Das added.

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