Reserve Financial institution of India (RBI) Governor Shaktikanta Das speaks on the International Fintech Fest (GFF) 2024, in Mumbai on Friday.
| Picture Credit score: ANI
The slowing of India’s economic growth to a 15-month low of 6.7% within the April-June quarter was as a consequence of “decrease” authorities spending within the wake of the enforcement of the mannequin code of conduct for the latest Lok Sabha polls, RBI Governor Shaktikanta Das stated right here on Saturday (August 31, 2024).
The RBI had projected a progress charge of seven.1% for the April-June quarter of this fiscal.
“The Reserve Financial institution projected a progress charge of seven.1% for the primary quarter. Nevertheless, the primary advance estimation information launched by the Nationwide Statistical Workplace confirmed the expansion charge at 6.7%,” Mr. Das advised reporters right here.
The elements and fundamental drivers chargeable for the GDP progress like consumption, funding, manufacturing, providers and building have registered a progress of greater than 7%, he stated.
Solely two elements have pulled the expansion charge barely down. These are—authorities (each central and state) expenditure and agriculture, the RBI Governor identified.
He stated the federal government expenditure was low throughout the first quarter maybe as a consequence of elections (April to June) and operation of mannequin code of conduct by the Election Fee.
“We might count on the federal government expenditure to choose up in coming quarters and supply the required help to progress,” Mr. Das stated.
Equally, the agriculture sector has recorded a minimal progress charge of round 2% within the April to June quarter. Nevertheless, the monsoon was excellent and unfold throughout India besides a number of areas. So, everyone seems to be optimistic and constructive concerning the agriculture sector, he famous.
“Below these circumstances, we have now moderately assured expectations that the annual progress charge of seven.2% projected by the RBI might be materialized in coming quarters,” the Governor asserted.
