Mumbai- The Indian economy has grown at just 6.6 per cent, which is the lowest growth rate in the last five quarters. The pace of Indian economy is slowing down. Many prominent economists have expressed concern with the chief of the Reserve Bank after a sudden break on the speed of the fast growing economy. Many economists have met the Reserve Bank governor Shaktikanta Das and said that such a monetary policy will have to be brought in by which the speed of the economy will revive. It is significant that the monetary policy committee meeting will be held on April 4, in which the monetary policy will be finalized for the new fiscal year.
It is worth noting that in the October to December quarter, the Indian economy has grown at just 6.6 per cent, which is the lowest growth rate in the last five quarters. Weak consumer demand and low investment are being considered for this reason. PM Modi is very zealous in the election campaign and once again he is putting all his strength to return to power, in such a situation, the slowing of the economy is being considered as a point of concern. Due to the slowing of the economy, the tax collection can be lower than the target and government spending may come down. An economist involved in this meeting told Reuters, “Most economists in the meeting were of the opinion that in order to accelerate growth, only a big step will be taken in monetary policy, because there is not much room for financial expansion.” Economist said that due to slowdown in the economy, India’s exports could be hit, whose pace is already sluggish. In February, India’s exports increased by 2.4 percent and in January it was 3.7 percent
However, regarding this meeting, RBI governor or any official of the Bank has not officially spoken anything. During the meeting, discussions on various issues such as dry, cash management, exchange rate, inflation, bank loan increases, interest rates were discussed between the Economist and the Reserve Bank officials. According to sources, this meeting lasted about two and a half hours. Many economists said that if the monsoon rains were not good, then the inflation could increase after September. However, it does not appear that the Reserve Bank’s convenient level will be above 4 per cent.