RBI Governor Asserts Growth Unhindered by Elevated Rates

RBI Governor Shaktikanta Das affirmed that current high interest rates have not stifled economic growth, citing robust economic activity over 18 months. India's GDP grew by 8.2% in FY24, and RBI maintains a growth forecast of 7.2% for FY25. Investment intentions and rural consumption remain strong despite concerns.

In a bid to reassure market watchers, RBI Governor Shaktikanta Das confirmed on Wednesday that the ongoing elevated interest rates are not hampering economic growth.

Das highlighted the strong economic activity witnessed over the past 18 months as evidence supporting his viewpoint. He noted that growth continues to be robust with visible investment intentions.

Despite the first quarter's deceleration in GDP growth to a 15-quarter low of 6.7%, Indian GDP achieved an 8.2% increase in FY24, with the RBI sticking to a 7.2% growth projection for FY25.