Reserve Bank of India (RBI) Governor Shaktikanta Das attended a fireside chat at the annual World Economic Forum (WEF) in Davos, Switzerland, marking the first time for an RBI Governor. The RBI Governor is scheduled to address a Luncheon with CII Session on Wednesday, 17 January, with the theme “High Growth, Low Risk: The India Story”.
RBI Governor Shaktikanta Das at the WEF said that India's efforts towards globalising the rupee “are not intended to replace the dollar”, reports Business Today. “There is no such thinking to move towards de-dollarisation... The dollar will continue to be the dominant currency", Shaktikanta Das added.
Inflation in India is moderating and steadily approaching the central bank's 4% target while growth prospects remain robust, Reserve Bank of India chief Shaktikanta Das said on the sidelines of the World Economic Forum.
"Inflation has come under control and is within the band we have, which is 2% to 6%. Target is 4%," Das said in a fireside chat at Davos organised by Invest India.
Core inflation has started steadily coming down and gives confidence that monetary policy is working, he added. "RBI remains fully committed to bring inflation down to the target of 4%."
Annual retail inflation rose the fastest in four months in December but core inflation, which strips out volatile food and energy prices, dropped to a four-year low of 3.8% to 3.89% from 4.05% to 4.2% in November.
Das said India's economic growth prospects remain robust, noting signs of sustained growth momentum in coming years.
The reduction in exchange rate volatility in India in recent years has renewed investors' confidence in the economy, he added.
RBI Governor said this is an opportune time for investors to invest in India, at the WEF summit in Davos, Switzerland.
“India today deserves a much more serious look because of all that is happening. The interest this time around in India is genuine. There is a lot of international confidence in India, the technology story built around India, the growth prospects of India and the stability, that is, the macroeconomic and financial sector stability that India offers,” Indian Express quoted Shaktikanta Das.
“India’s growth momentum will be maintained in the future years. I see durable signs of India’s growth momentum being maintained. It is not a one-off comment. It is based on a lot of in-house research and analysis,” Shaktikanta Das said.
Notably, global rating agency Fitch Ratings affirmed India’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at ‘BBB-’ with a stable outlook.
After a contraction of 5.8 per cent witnesses in FY2021, the Indian economy grew by 9.1 per cent in FY2022 and 7.2 per cent in FY2023, Das said.
According to the first advance estimate, released by the National Statistical Office (NSO), India’s economy is expected to grow at 7.3 per cent in FY2024.
RBI Governor Shaktikanta Das said that the Indian banking sector has made a remarkable recovery. The RBI has taken a lot of steps to improve the governance in the public and private sector banks, strengthening the regulatory architecture around the non-banking finance companies.
The Annual Meeting of the World Economic Forum (WEF) provides a platform for thought leaders, policymakers, and industry experts to exchange ideas and perspectives on critical global issues.
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