New Delhi: Indian economy is growing at a robust pace and will not face any challenge in achieving a growth rate upwards of 6.5 per cent in the current financial year, RBI Monetary Policy Committee (MPC) member Nagesh Kumar said on Sunday.
Kumar further said that Indian economy, among all economies, continues to remain a bright spot for the world.
“Actually, more than a third of global economies are under the debt crisis...The industrialised economies are facing a lot of pressure and high inflation and the slowdown of economic growth,” he said.
But because Indian economy is more driven by domestic consumption and domestic investment, less by export or trade, Kumar said India continues to grow very robustly.
“I do not see any challenges in Indian economy achieving upwards of 6.5 per cent kind of growth in the current year and the following year.
“And, you know, hopefully this kind of growth momentum will continue for coming years, but also be over time strengthened to 7 -7.5 per cent,” he said.
The Indian economy is estimated to have grown at 6.5 per cent in the previous fiscal year.
As per the Reserve Bank of India’s projections, the country’s economy will expand at the same rate in the current fiscal year as well.
Responding to a question on inflation, Kumar said current rate of CPI inflation is around 2 per cent and this is largely a result of the policy adopted by the MPC or RBI, and now it has come down to within the target range.
Asked if there is a room for the RBI for further rate cuts, he said, “It will depend on all different macro numbers, not just inflation numbers. If inflation comes down to 2 per cent in one month then it does not mean that it will stay there.”