April CPI data gives confidence monetary policy on right track: RBI chief

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the Enhanced CPI data for April The Reserve Bank of India (RBI) gave confidence in that Monetary policy is on the right tracksaid Governor Shaktikanta Das on Friday.

“The inflation figures give me and my colleagues at the Reserve Bank of India a fair amount of confidence that monetary policy is on the right track,” Das said at the launch of Amitabh Kant’s book, Made in India.

The CPI inflation reading for April came in at 4.7 percent, Much lower than the 5.7 percent for MarchAccording to data released on Friday.

All high-frequency indicators reflect that urban demand remains strong, Das said, and rural demand has begun to pick up and will continue to be supported by a good spring harvest. Moreover, monthly momentum continues to improve, with the help of government spending and capital spending.

There is also a clear indication of recovery in private investment, he said, led by sectors such as steel, cement and petrochemicals, among others, adding that India is expected to contribute 15 percent to global growth in FY24.

“We have given a forecast of 6.5 percent RBI and we are quite optimistic and very confident that the actual growth will be close to that,” he said, adding that the RBI has also shared its thoughts with the IMF. , which I projected slightly lower growth in fiscal ’24.

He said another thing that has helped India, which includes “a bit of luck”, is the stability of the Indian rupee, which is crucial for business, the private sector and private investors, as well as attracting foreign investment into the country. .

Das said the Indian economy needs to continue the reforms initiated across the financial sector and more, with an increased focus on technology.

“We need to focus more on technology because access to technology, thanks to the global fragmentation that has occurred because of the kind of geopolitics that we’re seeing today and may continue even in the years to come.”

He noted that this also entails an increase in spending on research and development, not only in the government but also in the private sector.