New Delhi, Oct 3
India is on a strong path to economic growth, backed by macroeconomic stability, self-financing, and a robust financial sector, Michael Debabrata Patra, former Deputy Governor of the Reserve Bank of India said on Friday.
Speaking to IANS on the sidelines of fourth Kautilya Economic Conclave here, Patra said India is well-positioned to sustain high growth rates even amid global uncertainties.
Patra highlighted that India's economy enjoys low inflation, a narrow current account deficit, manageable debt levels, and large foreign exchange reserves.
"All these suggest macroeconomic stability, and there is a clear commitment from the authorities to preserve it. This stability lays the foundation for higher growth and protects India from global spillovers such as tariffs," he told IANS.
He expressed confidence that India is moving toward an 8 per cent plus GDP growth trajectory, a trend that has already been reflected in the past five years since 2021.
"Even the first quarter shows a 7.8 per cent growth, which is usually a seasonal dip. The rest of the year is expected to be stronger," Patra added.
He noted that India's position as a largely self-financed economy, with most investment funded from domestic savings, and a strengthened financial sector with net non-performing assets close to zero, are key positives supporting sustained growth.
Patra also emphasised India's external stability, citing a narrow current account and large forex reserves, currently the fourth largest in the world.
He added that these factors, combined with ongoing trade negotiations and export-focused policy measures, will help India weather global challenges like tariffs.
"GST reforms and export packages are already reducing input costs for exporters. Negotiations with the US could further mitigate tariff impacts, especially given India's current trade surplus with them," he explained.
On India's role in a changing global order, Patra said the country has always followed a non-aligned strategy.
"India may emerge as a pole in a multipolar world, with the global south already regarding it as a leader. And it is doing so in a very calibrated fashion," he added.
— IANS
Reader Comments
While the growth numbers look impressive, I hope this translates to better job opportunities for our youth. The gap between GDP growth and employment generation needs attention.
Fourth largest forex reserves! That's something to be proud of. Our economic fundamentals are really strong now. Jai Hind! ðŸ™
As someone working in the banking sector, I can confirm that NPAs are indeed under control. The financial sector cleanup has been one of the biggest achievements in recent years.
The self-financing aspect is crucial. We're not dependent on foreign capital like many other emerging economies. This gives us real economic sovereignty.
India's calibrated approach in global affairs is smart. Not aligning with any bloc while emerging as a leader for Global South shows strategic maturity. The economic growth supports this positioning well.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.