RBI Governor Shaktikanta Das Discusses India’s Economic Growth and Subsidy Concerns
In Mumbai, RBI Governor Shaktikanta Das addressed the BFSI Summit, highlighting the increase in capital expenditure by the central and state governments. However, he expressed concerns over the high subsidy outgo, which is affecting GDP numbers. The government has allocated Rs 2,05,250 crore for food subsidies in FY25, a slight decrease from the previous year. The Indian economy grew by 6.7% in the April-June quarter, below the RBI’s forecast of 7.1%. The next GDP estimates for July-September 2024-25 will be released on November 29. Despite the subsidy impact, Das remains optimistic about robust economic activity. The RBI projects a 7.2% GDP growth for 2024-25, while the IMF and World Bank estimate 7.0%. India’s GDP grew by 8.2% in 2023-24, maintaining its status as the fastest-growing major economy.
Doubts Revealed
RBI -: RBI stands for Reserve Bank of India. It is the central bank of India, which means it manages the country’s money and financial system.
Governor -: The Governor of the RBI is the person in charge of the Reserve Bank of India. Shaktikanta Das is the current Governor, and he makes important decisions about India’s money matters.
Capital expenditure -: Capital expenditure is the money the government spends on building things like roads, schools, and hospitals. It’s like when you save money to buy a new bicycle.
Subsidy -: A subsidy is money the government gives to help make things cheaper for people, like food or fuel. It’s like when your parents give you extra money to buy a toy.
GDP -: GDP stands for Gross Domestic Product. It’s the total value of all goods and services produced in a country. It’s like counting all the toys you have to see how many you own.
FY25 -: FY25 means the financial year 2024-2025. In India, a financial year starts on April 1st and ends on March 31st of the next year.
IMF -: IMF stands for International Monetary Fund. It’s an organization that helps countries with their economies, like a big bank for countries.
World Bank -: The World Bank is an international organization that provides money and advice to countries for development projects, like building schools or hospitals.
