India's growth has been "exemplary" despite the challenges of the last few years, including the Covid pandemic, the war in Ukraine and other global tensions, Reserve Bank Governor Shaktikanta Das has said. In an exclusive interview with NDTV Editor-in-Chief Sanjay Pugalia, Mr Das said the last five or six years have been of "great volatility".
Covid alone, he said, had come in waves – after the first, the second wave and the Delta strain. Then came the war in Ukraine with its allied sanction, making navigation difficult.
"The Covid crisis has led to permanent output loss in every economy across the world. This output loss is looking permanent… In India's case, the way we have come out of the crisis is exemplary… and now, the financial sector has emerged stronger," he said.
To stay afloat in this period, the Reserve Bank has taken more than 100 measures and coordinated with the government.
Today, inflation is coming under control, but achieving 4 per cent is still some distance away. The financial sector today is much more stable and resilient than it was earlier, he said.
"We are projecting 7.2 per cent growth this financial year. We are not seeing any major growth sacrifice. It remains stable and resilient," he added.
Asked about inflation, Mr Das said the RBI's aim is to maintain inflation at around 4 per cent. "This year's average CPI inflation rate is 4.5 per cent. There are a lot of uncertainties to account for right now," he added.
But removing food inflation from the equation is not a solution, he said. The food inflation has a 46 per cent share in the overall consumption basket. "But we cannot take fuel and food out of the equation and say inflation is falling… It is not looking at the issue through the common person's lens. Nearly 50% of a household's spending is toward food," he said.
What needs to be done is to ensure price stability, which brings a lot of confidence to the consumer, he said. It would also be a way to boost investor confidence, along with maintaining inflation and financial stability.
