GDP growth could be closer to 8% in FY24: RBI Governor Shaktikanta Das

RBI Governor Shaktikanta Das on Wednesday said the economic growth in the current financial year could be close to 8 per cent in view of the third quarter GDP data released by the government.

The National Statistical Office (NSO) has projected 8.4 per cent growth in the October-December quarter of the current financial year. It has also revised GDP estimates for the first and second quarters to 8.2 and 8.1 per cent from 7.8 per cent and 7.6 per cent, respectively.

In an interview with ET Now, Governor Das said that overall the economy is doing very well, citing improvement in fiscal consolidation, current account deficit and price situation.

"We are now in the first week of March, given the kind of momentum of economic activity...I will not hesitate to say that there is every possibility of the 7.6 per cent growth for the current year being exceeded," he said.

Earlier, it was estimated that the GDP would expand by 5.9 per cent in the January-March quarter, taking the annual growth rate to 7.6 per cent for 2023-24.

"Our sense and understanding of the high-frequency indicators and the momentum of economic activity tells us that 5.9 per cent growth in the Q4 could be exceeded and when that happens, obviously, the growth will be more than 7.6 per cent. And I think there is quite a good chance of the GDP number for the current year being very close to 8 per cent," Das said.

On the price rise, Das said the latest inflation print of 5.1 per cent is still 110 basis points away from the target of 4 per cent. However, he said, the trend of inflation is on the decline and the RBI is now focused on taking inflation to the target of 4 per cent on a durable and sustainable basis.