India’s growth is phenomenal with over 8 per cent projections: RBI chief

Washington, Oct 15 India has recorded phenomenal growth with over 8 per cent projections in the past year amid unprecedented global uncertainties, RBI Governor Sanjay Malhotra said at the International Monetary Fund’s (IMF) annual meeting on Wednesday.

In his address, the RBI Governor highlighted that India is mostly a domestic-driven economy and "while tariffs have an adverse impact, it is not a matter of huge concern".

He was referring to the US tariff turmoil, which has disrupted global trade and slowed growth in other economies.

"We are living in times of unprecedented uncertainties on account of various reasons-including policy uncertainties. This has been challenging for the growth of the emerging market economy. It is a risk that all emerging marketing economies must take into account," the RBI Governor said.

Underlining the strong fundamentals of the Indian economy, Malhotra said: "India bounced back from Covid and the implications of the Russia-Ukraine war. We have managed our inflation very well, reducing it from 8 per cent to 1.5 per cent, which is the lowest in 8 years, and the strength of inflation has been elevated even as it has come down from the highs of 2022. Oil prices have also subdued, he noted.

The RBI chief further stated that India’s fiscal deficit is now at a manageable level and is projected to be 4.4 per cent of GDP for the Centre. The total debt is amongst the lowest in the world, he pointed out.

Good coordination between the government and the fiscal committee has helped achieve this, he added.

Malhotra also highlighted that while the dollar depreciated by 10 per cent, the Indian rupee has not depreciated so much this year, while most other currencies have. "This is because of larger tariffs and capital outflows. An orderly movement of the rupee is a priority for India," he said.

He further stated that the capital markets in India are quite deep and robust.

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