New Delhi. India has achieved an impressive growth rate of over 8 percent amid global uncertainties. Reserve Bank of India (RBI) Governor Sanjay Malhotra said this at the annual meeting of the International Monetary Fund (IMF) on Wednesday. He stressed that India is a domestic demand-driven economy and the US tariff dispute will have limited impact on its growth.
Malhotra said that despite disruption in global trade and slowdown in other economies, India has recovered from the effects of Covid-19 and the Russia-Ukraine war and has achieved a strong position. Describing India’s economic foundation as strong, he said that it is capable of facing global challenges.
Strong economic foundation and controlled inflation in India
RBI Governor said that India has succeeded in reducing inflation from 8 percent to 1.5 percent. This is the lowest level in the last 8 years. The fall in oil prices has also helped in this.
With this, India’s fiscal deficit is under control and the central government deficit is estimated at 4.4 percent of GDP. He also pointed out that India’s total debt is one of the lowest globally. Good coordination between the Government and the Finance Committee has played an important role in this achievement.
capital market strength
Malhotra said that while the US dollar declined by 10 percent, the Indian rupee did not see that much decline. This is due to tariffs and disruption in capital flows. He stressed that orderly movement of the rupee is a priority for India.
He also underlined that India’s capital markets are deep and strong, providing further stability to the economy. Despite global uncertainties, India’s economic progress and policy stability keep it a leader among emerging economies.