Mumbai. Reserve Bank of India (RBI) Governor Shaktikanta Das said on Wednesday that the data on economic growth is mixed, but the positive factors outweigh the negative aspects. Das said at the annual BFSI event of ‘Business Standard’ that underlying economic activity remains strong overall.
He said, “The data coming in is mixed, but the positive aspects outweigh the negative aspects and overall the underlying activities remain strong.” It is noteworthy that many analysts are expressing concern about the growth. This happened especially after the arrival of official data, when the growth rate in the first quarter of the financial year 2024-25 came down to 6.7 percent, the lowest level in 15 quarters. The Reserve Bank of India (RBI), however, is sticking to its GDP growth forecast of 7.2 percent for 2024-25, while some believe that it will be less than seven percent.
Das said the RBI looks at more than 70 high-frequency indicators to arrive at its estimates. Das said industrial production or IIP data, and urban demand for fast-moving consumer goods (FMCG) are subdued. Additionally, there has been an increase in subsidy expenditure in the September quarter and this will have an impact on the second quarter GDP figures. He mentioned GST e-way bill, toll collection, air passenger traffic and good performance of steel and cement industry among the positive aspects.