Shaktikanta Das, the Governor of the Reserve Bank of India (RBI), recently highlighted that India’s economic growth is likely to remain moderate in the near term, due to a combination of election-related uncertainties and challenges facing the agricultural sector. With national elections slated for 2024, he noted that political activities could lead to temporary disruptions in economic activities, particularly in sectors such as infrastructure and manufacturing.
Source:- news 18
Das also pointed out that while India has maintained a steady growth trajectory, driven by robust domestic demand and government spending, the agricultural sector presents a potential drag on the overall growth rate. Erratic monsoons, delayed sowing, and unpredictable weather patterns have affected the production of key crops. This has led to supply constraints and inflationary pressures, particularly in food prices, which could impact rural demand, a significant driver of economic growth in India.
Source:- BBC news
However, Das remains cautiously optimistic about the broader economic outlook, emphasizing that structural reforms and digitalization efforts are expected to support medium- to long-term growth. He acknowledged that the central bank is closely monitoring inflation trends and remains prepared to adjust monetary policy as needed to maintain price stability while supporting growth.
Looking ahead, the RBI Governor suggested that the government might need to enhance public investment in rural infrastructure and introduce targeted measures to support the agricultural sector. He emphasized that ensuring policy continuity and maintaining a conducive investment climate, even amidst electoral activities, will be crucial for sustaining growth momentum in the coming years. As the country approaches a critical juncture, balanced policy measures will be key to navigating the complexities posed by both domestic and global economic challenges.
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