Momentum of economic activity continues to be strong, says RBI Governor

“We are quite sanguine that the projection we have given for the first quarter of this year, 7.2 percent, we are quite optimistic that it will be 7.3 percent,” Das said on June 18.

The momentum of economic activity continues to be strong, said Shaktikanta Das, Governor, the Reserve Bank of India (RBI). “We see a very strong momentum of strong economic growth. It was perhaps the strongest last year. We see a strong momentum of economic activities, growth,” Das said at the ET Now Leadership Dialogues on June 18.

Das also said that the growth projection for the first quarter is quite optimistic.

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Also read: RBI projects real GDP growth at 7.2% for FY25

Earlier, the central bank on June 7 raised the projection of real gross domestic product for the financial year 2024-25 to 7.2 percent, from 7 percent estimated previously. The governor said the GDP growth in the first quarter is likely to be at 7.3 percent, 7.2 percent in Q2, 7.3 percent in Q3 and 7.2 percent in the last quarter, Das said during the monetary policy committee’s (MPC's) press briefing on June 7.

Das also noted that private consumption is recovering, and highlighted that the revival in rural demand is getting a fillip from farm activities. India Meteorological Department's forecast is expected to improve Kharif output, he said

Meanwhile, the central bank governor said that the CPI headline has softened further in March-April, but food inflation still remains elevated.

“We are quite sanguine that the projection we have given for the first quarter of this year, 7.2 percent, we are quite optimistic that it will be 7.3 percent,” Das said on June 18.