The indian economy is in turmoil at this time. FIIs are leaving the country. Due to this, the stock market has also seen a huge decline for the last several days. The inflation figure is also going up. However, RBI governor Shaktikanta Das is confident that inflation can be controlled. He said that due to many problems going on in the world, there is pressure on inflation. But, there is a balance between inflation and growth in the country. The indian economy is in a strong position. Inflation will be controlled by the fourth quarter of the current financial year.
Monetary Policy Committee's focus on inflation
According to Shaktikanta Das, due to weather uncertainty and geopolitical problems, the inflation figure has gone above our target of 4 percent. It will see improvement during the January-March quarter. Addressing the Macro Week 2024 organized in Mumbai, he said that the stability and strength of the indian economy has given the Monetary Policy Committee an opportunity to focus on inflation in addition to interest rates for the time being. Despite the ill effects of Kovid 19, we have maintained an economic growth rate (GDP Growth) of about 8 percent for the last three financial years. It is estimated to be around 7.2 percent in the financial year 2025 as well.
IMF World bank cautious about economic crisis
The RBI governor said that domestic demand is increasing. Along with this, manufacturing is also increasing in the country. Private investment is also increasing in the country. The government has focused on increasing capital expenditure and keeping the economic health of banks strong. NBFCs are also performing well. The corporate sector is also contributing to the progress of the country by increasing investment. With the development in the agricultural sector, demand is expected to increase in rural areas as well. The international Monetary Fund (IMF) and the World bank are working together to tackle the economic crisis arising in the world.
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