India's economy will grow at 7%, will remain strong despite global challenges

Contrary to the trends of recession and economic downturn in many countries in the world, including the developed economies of Germany, USA and other nations, Indian economy appears to be on the path of growth and is likely to grow in the days to come.

Reserve Bank of India (RBI) Governor Shaktikanta Das said that despite the global recession, the Indian economy is likely to grow by 7 percent in the next financial year (2024-25). Global challenges will not have much impact on India's economy. "Amidst the challenging global macroeconomic environment, India presents a picture of growth and stability," Das said at a CII session on the sidelines of the World Economic Forum (WEF) meeting in Davos, Switzerland.

"The structural reforms undertaken by the government in recent years have boosted the medium and long-term growth prospects of the Indian economy," he said. He said India remains the fastest growing major economy with strong domestic demand. Das also said that inflation in India has come down from the high levels seen in mid-2022.

"The prospects for a soft landing have improved and markets have responded positively. However, geopolitical risks and climate risks remain a matter of concern," he said. Soft landing is a situation where the central bank does not raise interest rates sharply to control inflation to avoid stunting economic growth. He also said that India is in a comfortable position as far as external balance is concerned with strong foreign exchange reserves.