Fundamental growth drivers gaining momentum for Indian economy says RBI governor

Shaktikanta Das, governor of Reserve Bank of India (RBI) has stated that notwithstanding the moderation in growth from the previous quarter and below RBIs projection for Q1, the data shows that the fundamental growth drivers are gaining momentum. This gives us confidence to say that the Indian growth story remains intact, he noted. Private consumption, which is the mainstay of aggregate demand with a share of around 56% in GDP, has rebounded to 7.4% growth from a feeble 4% growth in the second half of the previous year. This reconfirms the revival of rural demand. The other important driver of growth, i.e., investment, which accounts for around 35% of GDP, grew at 7.5%, keeping up with its recent momentum. Thus, more than 90% of GDP expanded at a robust pace and materially above 7%, Das added further.

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