India can certainly achieve 7 pc plus growth rate: RBI Governor

Reserve Bank Governor Sanjay Malhotra on Friday said India can certainly achieve over 7 per cent growth rate and the nation should aspire for that.The Reserve Bank of India (RBI) in its bi-monthly monetary policy has projected 6.7 per cent growth for financial year 2025-26, up from 6.4 per cent estimated for the current fiscal. "I would like to stick my neck out and say that, certainly India can achieve a 7 per cent and plus growth rate. We should certainly aspire for that," he said when asked whether there was a possibility of the Indian economy growing at a faster pace. Commenting on the Budget proposals of Finance Minister Nirmala Sitharaman, he said the income tax relief will not fuel inflation but would support growth.During the interaction with the media in Mumbai, after unveiling the last bi-monthly monetary policy of this fiscal year, he further said that the Union Budget 2025-26 is 'excellent' from both growth as well as inflation point of view.Focus of the Budget on agriculture will help increase production of pulses, oilseeds and others and bring down food inflation.

#WATCH | Mumbai | RBI governor Sanjay Malhotra says, "All the parameters we analyze very regularly, the high-frequency indicators that we have and whether one looks at agriculture with good reservoir levels. Whether it is in terms of agriculture, whether it is in terms of… pic.twitter.com/czfr46TgcI

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Food inflation pressures, in absence of any supply-side shock, should see a significant softening due to good Kharif production, winter-easing in vegetable prices and favourable Rabi crop prospects, he said.On rupee, the Governor said, the exchange rate policy has remained consistent over the years and the central bank does not target any 'specific level or band' of the rupee. "We should not be looking at day-to-day volatility in rupee", but focus on long-term exchange rate, he said.