RBI echoes in Washington: This year India will grow at 7.4 %

Washington, April 23: India’s growth is expected to expand at 7.4 percent in the next fiscal year said RBI Governor Urjit Patel while addressing the International Monetary Finance (IMF) Committee in Washington on Sunday.

Patel said, “The Indian economy turned in a resilient performance in 2017-18, and it is expected to accelerate in 2018-2019.”

He said, the real GDP growth was moderated to 6.6 percent from 7.1 percent a year ago, but there was a strong rebound in the second half of the year on the back of a turnaround in investment demand.

The RBI Governor said, global demand is now improving, which should encourage exports and boost fresh investments. He said this could help accelerate the pace of growth. Patel also said, since November 2016, headline consumer price inflation had generally remained below the medium-term target of four percent.

He added that an unusual spike in vegetable prices pushed up inflation to a recent peak of 5.2 percent in December, but it eased in subsequent months to reach 4.3 percent in March.

The RBI Governor said, “Several factors are likely to influence the inflation outlook, including a possible moderation in food prices if the monsoon turned out to be normal and was supported by an effective food supply management.”