Business
DBS economist sees India at 6.5-7% growth
Livemint··3h ago
DBS group chief economist Taimur Baig said India has absorbed external shocks and can grow at a fast clip without major monetary or fiscal easing. He told Mint global growth will exceed 3% this year while India stays on a 6.5-7% trajectory. August retail inflation hit a 20-month high of 4.82%, still within RBI's 2-6% band.
Prism
What It Means For You
- Some analysts expect RBI to raise the benchmark lending rate by 25 basis points to 5.5% in October.
- Baig said fiscal policy is going in the right direction and monetary policy is largely neutral.
- He warned bond yields may rise across major advanced economies as the zero-rate era ends.
What's Happening
- Baig said strong domestic demand despite rising prices suggests decent income conditions.
- He cited Nifty earnings, auto sales and retail data as signs the economy is doing quite well.
- He said India could aim for 8% or 9% growth but current outturn shows capacity to absorb headwinds.
The Numbers Behind It
- Inflation remains within RBI's 2-6% band despite energy-driven pressures amid war in West Asia.
- Baig said headwinds must be weighed against affordability and absorbability each year.
- He noted similar demand strength in East Asia and the United States.
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