DEA Secretary Ajay Seth said the government concurs with the RBI’s revised growth projections.

According to Ajay Seth, secretary of the department of economic affairs, the government supports the Reserve Bank of India’s (RBI) decision to update India’s economic growth estimate for FY24 to 7% because the nation has experienced strong growth during the first two quarters of the fiscal year.

Speaking on the fringes of the annual convention and general meeting of FICCI, Seth stated that even if the Indian economy had strong growth in the first two quarters, supply-side measures to control food prices will still be implemented despite the country’s high rate of inflation.

“We wholeheartedly concur with the RBI’s evaluation. The increase that India has experienced in the first half of the year and the first two months of the current quarter make this quite clear. High frequency indicators, or HFIs, are demonstrating strong momentum, therefore this upward adjustment is evenly spaced, according to Seth.

However, stickiness does exist. Aiming for 4% inflation, give or take 2%, is the policy target. We’re still a ways off from [reaching] 4%. We’ll keep taking whatever supply-side actions are necessary for food products, Seth continued.

The RBI had initially estimated FY24 growth at 6.5% before adjusting it. The Indian economy exceeded forecasts to record excellent 7.6% growth in the September quarter, maintaining its title as the fastest-growing major economy in the world after clocking 7.8% growth during the June quarter.