Mumbai: India can achieve a growth rate of 7% or more, said RBI Governor Sanjay Malhotra on Friday. He spoke at the post-MPC press conference, expressing confidence in the country’s economic potential.
The government has projected a growth rate of 6.3-6.8% for the financial year 2025-26. The RBI has forecasted 6.7% growth for the same period.
When asked about the priority between growth and inflation, Malhotra said managing inflation remains the primary goal. However, he added that the RBI will support growth as inflation is coming down.
“We will maintain a neutral stance to respond to evolving economic conditions,” he stated.
On inflation, the RBI expects the Consumer Price Index (CPI) to ease to 4.8% in 2024-25. By 2025-26, it is projected to drop further to 4.2%.
Food inflation is also expected to soften due to a strong rabi crop, contributing to stable prices.
In his first Monetary Policy announcement as RBI Governor, Malhotra revealed a key decision. The RBI has cut the policy rate by 25 basis points to 6.25%. This is the first such cut in five years.
The move signals a shift in policy, aiming to balance inflation control with economic growth.
