India: economic growth is possible up to 8%

The head of the Reserve Bank of India, Shaktikanta Das, expressed confidence in the country's ability to achieve sustainable economic growth in the region of 7.5-8% in the medium term.

This statement was made against the background of published data on the slowdown in India's GDP growth to 6.7% in the second quarter of this year, compared with 8.2% in the same period last year. This dynamic has increased the pressure on the RBI to lower interest rates.

Das stressed that steady growth of 7.5-8% is realistic for the largest country in the world. Although the International Monetary Fund previously called India the «fastest growing major economy in the world,» growth has slowed in recent quarters and the IMF forecasts a decline to 6.5% in 2025.

The head of the RBI also noted that the influence of external factors, such as the actions of the Fed, is taken into account, but internal factors remain decisive. The question of a possible reduction in the RBI rate in October remained open. Das stated that the decision will depend on the monthly dynamics of inflation and growth.