Although the Reserve Bank of India (RBI) cannot predict exact GDP numbers for the next four years, Governor Shaktikanta Das said that there is a possibility that India’s economic growth in fiscal year 2023 (FY23) may exceed 7%.
He stated that despite the Covid-19 pandemic, which decimated India’s growth, several indicators point to faster growth in the coming years. These include strong private consumption, the launch of reforms, the improvement of the agricultural sector, the gradual re-opening of the economy, allowing the spread of new technologies and the unlocking of infrastructure projects.
However, the governor noted that the growth estimates also depend on the effective management of the Covid-19 pandemic, avoiding any major flareups, controlling the spread of the virus, completing the vaccination drive in time and improving the performance of the manufacturing sector. He also added that it is important to maintain the gains made in fiscal consolidation over the last few years in order to maintain economic stability, increase business investments, and achieve economic growth.