Govt agrees with RBI’s raised growth estimates

The government concurs with the RBI’s decision to revise India’s FY24 economic-growth estimate to 7% as the country has achieved high growth during the first two quarters of the fiscal, Ajay Seth, secretary of the department of economic affairs, said.

Seth said despite recording high growth in the first two quarters, the Indian economy still faces stickiness on inflation and supply-side measures will continue to be taken to keep food prices in check.

“Certainly, we agree with the RBI’s assessment. It is quite obvious [with] the growth that India has achieved in the first half of the year and the two months of the current quarter. HFIs (high frequency indicators) are showing good momentum so this upward revision is well spaced,” Seth said.

“But stickiness is there. The policy goal (on inflation) is 4%, plus or minus 2%. We are some distance away from [achieving] 4%. Whatever supply-side measures have to be taken for food products will continue to be taken,” Seth added.