ENA Economy 2024-10-23 16:38:42 <p><span style="font-size:14px"><strong>New Delhi, Oct 23 (KNN)</strong> Reserve Bank of India Deputy Governor Michael Debabrata Patra has projected India's return to its long-term growth trajectory of 8 percent, following anticipated growth rates of 7.2 percent in FY25 and 7 percent in FY26. </span></p> <p><span style="font-size:14px">Speaking at the Federal Reserve Bank's New York Fed Central Banking Seminar on Monday, Patra described these intermediate figures as part of a cyclical correction following the pandemic rebound.</span></p> <p><span style="font-size:14px">The deputy governor emphasised the critical importance of robust macroeconomic fundamentals and substantial financial buffers in safeguarding against global economic risks. </span></p> <p><span style="font-size:14px">This strategy appears to be yielding results, as evidenced by India's foreign exchange reserves reaching a historic peak of USD 704.9 billion on September 27, before moderating to USD 690.4 billion by October 11. </span></p> <p><span style="font-size:14px">These reserves now provide coverage for 11.8 months of imports and exceed 101 percent of the nation's external debt as of June 2024.</span></p> <p><span style="font-size:14px">India's performance in building its foreign reserves has been particularly noteworthy in 2024, with a net increase of USD 68 billion through October 11, positioning the country as the second-largest accumulator of foreign reserves among major economies, surpassed only by China.</span></p> <p><span style="font-size:14px">Addressing inflation concerns, Patra acknowledged that price pressures are expected to continue through October and November. </span></p> <p><span style="font-size:14px">However, he anticipated that the headline inflation rate would align with the RBI's target by December and maintain stability throughout FY26. </span></p> <p><span style="font-size:14px">While the RBI had initially projected inflation at 4.5 percent for FY25, recent data shows retail inflation reached a nine-month high of 5.49 percent in September, primarily due to escalating food prices and base effect factors.</span></p> <p><span style="font-size:14px"><em><strong>(KNN Bureau)</strong></em></span></p> 39685 https://knnindia.co.in/news/newsdetails/economy/rbi-deputy-governor-projects-indias-return-to-8-growth-path-by-2026 2024-10-23 16:38:42 knnindia.co.in