MUMBAI: The Reserve Bank Governor Shaktikanta Das on Thursday said the country’s growth story remains intact with consumption and investment demand growing in tandem, and emphasised that past reforms need to be augmented by reforms in land, labour and agricultural markets.
He also sounded sanguine about the economy growing at the projected 7.2% this fiscal and that the Q1 poor show does not mean the central bank’s growth forecast is “out of place”.
Addressing the national banking conference organized by the industry lobbies Ficci and IBA here Thursday, the governor also asked financial institutions to create tailored products to suit businesses promoted by women and small businesses without diluting underwriting standards.
In his inaugural speech, Das also spoke on the issues relating to strengthening the financial sector and expectations from them.
Despite a lower-than-expected GDP growth in the June quarter our growth story remains intact, he said and that the RBI’s growth projection of 7.2% for fiscal 2025 also does not appear ‘out of place’.
The governor said the economy is forging ahead with macroeconomic and financial stability, and a favourable growth-inflation balance and will grow at 7.2 percent this fiscal, adding the economy is now at a critical juncture and massive changes are taking shape in various sectors and markets. The economy grew by a lower than forecast 6.7% in the June quarter, a five-quarter low and much lower than the central bank forecast of 7.1%.
The country is geared for orbital shifts and the nation’s journey towards becoming an advanced economy is drawing strength from a unique blend of factors such as a young and dynamic population, a resilient and diverse economy, a robust democracy, and a rich tradition of entrepreneurship and innovation, Das said.