This projection comes in the wake of India's economy expanding at a rapid pace of 8.4% in the final three months of 2023, marking its swiftest growth in 18 months, largely propelled by vibrant manufacturing and construction sectors.
Consequently, in light of this data, the government adjusted its growth estimate for the fiscal year ending on March 31, 2024, upward from 7.3% to 7.6%.
Das indicated confidence in this trajectory, drawing from assessments of high-frequency indicators and the overall momentum of economic activity.
He said that the anticipated 5.9% growth in the fourth quarter might surpass expectations, potentially resulting in a full-year growth rate exceeding the projected 7.6%.
Das expressed a strong likelihood of the GDP growth for the current year nearing the 8% mark.
Furthermore, Das highlighted positive trends in rural demand, which has notably strengthened compared to the previous year, while urban demand remained resilient.
"Investment activity continues to be strong, driven by government capex and private capex also beginning to pick up particularly in certain key sectors like steel, some sectors related to construction activity, textiles, chemicals. So private investment is also picking up," he said.
The central bank has forecast a growth rate of 7% for the upcoming fiscal year. Governor Das expressed considerable optimism regarding the prospects for the next year, emphasizing that achieving a 7% growth rate was highly feasible.
He reiterated the commitment of the RBI's monetary policy committee to the objective of lowering inflation to its target of 4%. Despite observing a clear downward trend in prices, Governor Das pointed out significant uncertainties such as geopolitical tensions and weather-related risks that continue to warrant attention.
"There is no room for complacency at all and we need to remain focused and committed to our goal of maintaining financial stability and supporting economic activity in the country".