Fri Feb 07 09:17:29 UTC 2025: ## RBI Governor Confident India Can Achieve 7%+ Growth, Prioritizes Inflation Control
**Mumbai, India** – Reserve Bank of India (RBI) Governor Sanjay Malhotra expressed confidence on Friday that India can achieve a growth rate of 7 percent or higher, stating that this should be the nation’s aspiration. This statement came during a post-Monetary Policy Committee (MPC) press conference. While acknowledging the challenges, Malhotra asserted that India possesses the potential to surpass the projected growth rates.
The government’s Economic Survey projected a growth rate of 6.3-6.8 percent for fiscal year 2025-26, a figure the RBI revised slightly upward to 6.7 percent. However, Malhotra emphasized that while growth is important, managing inflation and ensuring price stability remain the primary objectives for the RBI.
The central bank anticipates inflation to continue its downward trajectory, forecasting CPI inflation at 4.8 percent in 2024-25, and 4.2 percent in 2025-26. This projection is based on favorable food price outlook and the effectiveness of previous monetary policy actions. A bountiful rabi crop is expected to further ease food inflation pressures.
Acknowledging the decline in inflation, Malhotra indicated a shift towards a more growth-supportive stance. The MPC unanimously decided to cut the policy repo rate by 25 basis points to 6.25 percent, the first reduction in approximately five years. Malhotra hinted that the RBI aims to bring inflation down to its ideal target of 4 percent, maintaining a neutral stance to allow for flexibility in responding to evolving macroeconomic conditions.
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