RBI’S Governor, Shaktikanta Das :India's economy is still moving in a good direction

The Governor of the Reserve Bank of India (RBI), Shaktikanta Das, said on Thursday that India's economy is still moving in a good direction.

Read More: RBI August MPC Meet: Maintained the benchmark repo rate at 6.5%, as economist predicted

Das told a news conference that, on the supply side, crop planting has picked up and the southwest monsoon is making steady progress. The monsoons have happened at different times and in different places.

The latest data on the index of industrial production (IIP), the output of core industries, and the purchasing managers' index (PMI) for manufacturing show that industrial activity is stable, he said.

He also said that these underlying changes and the upcoming festival season should help boost private spending and business activity.

The future is risky, though, because of the effects of weak external demand and long-lasting geopolitical tensions.

India's real GDP growth is expected to be 6.5% in the years 2023-2024, with Q1 at 8%, Q2 at 6.5%, Q3 at 6%, and Q4 at 5.7%.

Real GDP growth is expected to be 6.6% in Q1 2024-25. The Governor also said that the risks are about even. The Phd Chamber of Commerce and Industry has also said that India's economy is doing well, including its demand, supply, and policy situation. The PHDCCI Economy GPS Index for July 2023 went up by 14% from July 2022, when it was 136.1, to July 2023, when it was 155.3.

During a three-day meeting of its monetary policy committee, the RBI chose unanimously to keep the repo rate at 6.5%. Das said, The Monetary Policy Committee agreed equally to keep the Repo Rate at 6.50 percent.

RBI has six meetings every two months during a financial year. At these meetings, it decides on interest rates, money supply, the prospects for inflation, and other macroeconomic indicators.

Rohit Arora, CEO and co-founder of Biz2Credit and Biz2X, said that the results of the recent RBI MPC Meeting were mostly what he expected. Even though interest rates have stayed the same, rising oil prices are a clear cause for worry.

This will definitely make it harder for our government to come up with and keep up strong plans for economic growth. Also, there are clear signs that the US is heading towards a recession, so it will be hard for our government to keep our GDP growth steady,said Arora.

Arora also said that these global and local signs show how interconnected our economies are and how important it is to have flexible, forward-looking strategies.