RBI Governor outlines sustainable growth path for Indian economy

Shaktikanta Das highlights key drivers of growth and calls for private-sector investment and further reforms

September 5, 2024

The Governor encourages the private sector to increase investments, asserting that India's growth story remains strong and banks have robust balance sheets

He highlights the positive long-term impacts of reforms like GST and IBC while stressing the need for further reforms in land, labour, and agriculture markets

Das suggests that a well-balanced approach to inflation and growth, alongside favourable monsoon and Kharif sowing, could improve the outlook for food inflation

He calls for expanding digital platforms for inclusive growth, tailored products for women-led businesses and MSMEs, and prudent lending practices on the Unified Lending Interface (ULI) platform

GoI, World Bank sign US$750mn loan deal for MSMEs

Reserve Bank of India Governor Shaktikanta Das has emphasised that the core drivers of the Indian economy are gaining strength, propelling the country onto a sustainable growth trajectory. In his inaugural address at FIBAC 2024, Das stated that substantial changes are occurring across various economic sectors and markets, setting the stage for significant transformation.

He explained that India’s journey towards becoming an advanced economy is supported by a unique mix of factors, including a young and dynamic population, a resilient and diverse economy, a robust democratic framework, and a rich tradition of entrepreneurship and innovation. According to Das, these elements are crucial in driving the nation’s progress.

Highlighting the resilience of India’s economic growth, Das pointed out that the growth momentum is intact, and banks have maintained strong balance sheets. He urged the private sector to significantly increase its investments, reinforcing his confidence in the continuing strength of India’s economic story.

Das also discussed the long-term benefits of past reforms, such as the Goods and Services Tax (GST) and the Insolvency and Bankruptcy Code (IBC). He underscored the importance of further reforms in land, labour, and agricultural markets to sustain growth.

Addressing inflation concerns, he noted that the balance between inflation and growth is currently well-maintained. He suggested that the food inflation outlook could become more positive with the monsoon progressing favourably and healthy Kharif sowing.

Furthermore, the Governor called for the financial sector to expand access to digital platforms, thereby fostering inclusive growth. He advocated for developing tailored financial products and services for women-led businesses and micro, small, and medium enterprises (MSMEs) without compromising underwriting standards.

Das also emphasised that only regulated entities would be allowed on the Unified Lending Interface (ULI) platform to ensure prudent lending practices. He clarified that the ULI will not be restricted to a select group of players, ensuring a level playing field for all.

Source: Business Insider

Recent Articles

Maldives president seeks Indian aid amid looming debt crisis

October 7, 2024

Maldives President Mohamed Muizzu arrived in Delhi on Sunday for …

Read More

India’s digital transformation poised to create a US$1 trillion economy by 2028

October 7, 2024

India’s financial ecosystem has undergone a paradigm shift driven by …

Read More

India’s per capita income set to surge by US$2,000 in five years: FM Sitharaman

October 4, 2024

Union Finance Minister Nirmala Sitharaman has expressed optimism about India’s …

Read More