Mumbai: RBI Governor Shaktikanta Das dismissed concerns that the Reserve Bank of India’s (RBI) India’s economic growth forecast for the current financial year is overly optimistic and said the negative factors in the economy far outweigh the positive factors. Are.
Last year, even when we projected higher economic growth rates, the Reserve Bank was criticized for being overly optimistic. But ultimately the growth rate exceeded our expectations, the Governor said in an interview to a TV channel.
Despite recent signs of slowdown in economic activity, the Reserve Bank has retained the GDP estimate of 7.20 percent for the current financial year.
India’s outlook is being downgraded by several rating agencies. Despite some mixed signals, Das argued that the overall picture remains positive.
First quarter GDP figures came in weaker than expected and second quarter figures are due in late November. Some activities have been affected due to unseasonal rains. There are reports that sales have been weak during the festive season but the signals are mixed. He argued that along with some negative factors, positive factors are also being observed but the amount of positive factors is more than the negative factors.
The Reserve Bank has given credit to the agricultural sector for estimating the economic growth rate. The agriculture sector is performing well due to good monsoon in the current year. Rural demand is now improving due to good crop irrigation.