RBI Remains Cautious Despite India Projecting 7% Growth, Says Arvind Panagariya

The RBI’s latest projections indicate that India’s gross domestic product is expected to rise by a minimum of 7% this fiscal year. Despite this optimistic growth forecast, the central bank has adopted a cautious tone in its policy outlook, citing uncertainties in global markets and domestic supply chains. Economist Arvind Panagariya, speaking on Moneycontrol.com, highlighted that while the growth trajectory remains robust, the RBI’s prudence reflects concerns over inflationary pressures and external shocks. The bank’s cautious stance is expected to influence monetary policy decisions in the coming months, potentially affecting interest rates and liquidity conditions.