The Indian economy is growing at a strong tempo and won’t face any problem in attaining a development price upwards of 6.5% in the present monetary yr, RBI Monetary Policy Committee (MPC) member Nagesh Kumar stated on Sunday (July 27, 2025).
Mr. Kumar, in an interview with PTI Videos, additional stated that the Indian economy, amongst all economies, continues to stay a vibrant spot for the world.
“Actually, more than a third of global economies are under the debt crisis…The industrialised economies are facing a lot of pressure, high inflation and the slowdown of economic growth,” he stated.
But as a result of the Indian economy is extra pushed by home consumption and home funding, and fewer by export or commerce, Mr. Kumar stated India continues to develop very robustly.
“I do not see any challenges in the Indian economy achieving upwards of 6.5% kind of growth in the current year and the following year. And, you know, hopefully this kind of growth momentum will continue for coming years but also be over time strengthened to 7-7.5%,” he stated.
Also learn: India to develop at 6.5% in FY26: EY Report
The Indian economy is estimated to have grown at 6.5% in the earlier fiscal yr.
As per the Reserve Bank of India’s projections, the nation’s economy will develop on the identical price in the present fiscal yr as properly.
Responding to a query on inflation, Mr. Kumar stated the present price of CPI inflation is round 2% and that is largely a results of the coverage adopted by the MPC (monetary coverage committee) or RBI, and now it has come all the way down to inside the goal vary.
Asked if there’s room for the RBI for additional price cuts, he stated, “It will depend on all different macro numbers, not just inflation numbers. If inflation comes down to 2% in one month, then it does not mean that it will stay there.”
The RBI has minimize the important thing charges by 1 share level this yr, and official information pointing to headline inflation cooling to 2.1% in June towards the 4% goal has led to expectations of additional easing.
The six-member monetary panel of the RBI is predicted to announce its subsequent bimonthly coverage in August.
“So, MPC will have to look at trend projections, not only inflation data but all other macro-parameters and reach a conclusion on the basis of what the trends and patterns look like,” Mr. Kumar noticed.
The RBI has been tasked by the federal government to make sure retail inflation stays at 4% with a margin of two% on both aspect.
Responding to a query on India’s proposed Bilateral Trade Agreement (BTA) with the U.S., Mr. Kumar stated, “If we can get through this agreement, then we will get access to America’s vast market in the labour-intensive sector where India has a competitive advantage because of our abundant labour resources.”
Mr. Kumar identified that India has some issues about opening up its agriculture sector, the dairy sector and some others.
Noting that commerce negotiations are based mostly on give and take, he stated, “Supposing certain things, we agree to open up but there could be a quota placed, which will limit the tariff advantage given to the partner only for a limited quantity.”
So, Mr. Kumar stated, there are numerous methods to handle a commerce negotiation and he’s positive that Indian negotiators are attempting to guard the nation’s pursuits in the absolute best method whereas additionally gaining access to among the labour-intensive items markets.
U.S. President Donald Trump has stated the proposed commerce cope with India could be on the traces of what America has finalised with Indonesia on Tuesday (July 22, 2025).
Under the U.S.-Indonesia commerce pact, the Southeast Asian nation will present full entry to its market to U.S. merchandise, whereas Indonesian items would entice a 19% obligation in America.
In addition, Indonesia has dedicated to buying $15 billion in U.S. power, $4.5 billion in American Agricultural Products, and 50 Boeing jets.
India has hardened its place on the U.S. demand for obligation concessions on agri and dairy merchandise. New Delhi has, to date, not given any obligation concessions to any of its buying and selling companions in a free commerce settlement in the dairy sector.
India is searching for the elimination of the extra tariff of 26% introduced by the U.S. in April. The implementation of the extra tariff has been suspended till August 1, 2025.
India can also be searching for an easing of tariffs on metal and aluminium (50%) and the auto (25%) sectors. Against these, India has reserved its proper beneath the WTO (World Trade Organisation) norms to impose retaliatory duties.
Responding to a query on the surge in web outward overseas direct funding (FDI), Mr. Kumar stated so far as gross FDI numbers are involved, they’ve proven a superb improve from $71 billion to $81 billion in 2024-25.
“Net FDI inflows look smaller because there have been a lot of repatriations… I am not too concerned about outflows of repatriation, as long as the gross inflows keep growing, which they are at this moment,” he stated.
Mr. Kumar asserted that the continued good and strong efficiency of the Indian economy will proceed to draw world firms to India, and the FDI outlook for the nation will stay very constructive and can entice increasingly more FDI inflows in the approaching yr.
According to UNCTAD’s newest World Investment Report, world FDI flows declined by 11% to $1.5 trillion in 2024, marking the second straight yr of decline.
