Each year, the World Economic Forum Annual Meeting convenes influential leaders from government, business, and civil society to address critical global issues and set priorities for the upcoming year.
The Annual Meeting for 2024, held in Davos, Switzerland from January 15 to January 19, is currently underway with a focus on rebuilding trust in the face of uncertainty and rapid change. More than 300 public figures are participating, including over 60 heads of state and government.
Among the speakers, Reserve Bank of India (RBI) Governor Shaktikanta Das discussed India’s growth momentum, emphasising that it is poised to continue in the coming years. This positive outlook is attributed to the structural reforms implemented in previous years and the country’s macroeconomic and financial stability.
“India today deserves a much more serious look because of all that is happening in India. 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,” Das said during a fireside chat session.
Furthermore, he talked about India’s growth momentum and how it will be maintained in the future. “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,” he said.
Following a contraction of 5.8 per cent in FY2021, the Indian economy experienced growth rates of 9.1 per cent in FY2022 and 7.2 per cent in FY2023, as stated by Governor Shaktikanta Das. The first advance estimate from the National Statistical Office (NSO) predicts a 7.3 per cent growth for the country’s economy in FY2024.
Das made this announcement on a day when Fitch Ratings, a global rating agency, reaffirmed India’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at ‘BBB-‘ with a stable outlook. Fitch Ratings attributed India’s rating to a robust medium-term GDP growth outlook and solid external finances.
The agency commended India for successfully navigating a challenging external environment in recent years, indicating the resilience of the country’s economic fundamentals. Das remarked that despite facing global challenges, the Indian banking sector has undergone a notable recovery.
The Reserve Bank of India (RBI) has implemented various measures to enhance governance in both public and private sector banks, while also fortifying the regulatory framework for non-banking finance companies.
In response to questions regarding the inflation outlook, Das stated that inflation has been brought under control and is within the 2-6 per cent range, although the target is set at 4 per cent.
“RBI remains fully committed to bringing inflation closer to around 4 per cent. The trend for the moderation of inflation has begun. When we will reach 4 per cent, I cannot give a date, but we are moving towards that,” he said.
As of December, the consumer price-based inflation (CPI) registered at 5.69 per cent, showing a slight increase from 5.55 per cent in November. Governor Das highlighted that core inflation, serving as an indicator of the efficacy of monetary policy, had reached 6.1 per cent at a certain juncture and sustained at 6 per cent for a considerable period.
However, in December, core inflation exhibited a decline, settling at 3.8 per cent. Das expressed that the reduction in core inflation provides assurance that the monetary policy measures are yielding positive results.