RBI Governor Shaktikanta Das Links Q1 GDP Decline to Model Code of Conduct and Spending Cuts

RBI Governor Shaktikanta Das has attributed the decline in India's GDP for the first quarter to the implementation of the Election Commission's model code of conduct, which led to reduced government spending. Despite this setback, Das reassured that the overall growth trajectory of the Indian economy remains robust.

Economic Context

The Reserve Bank of India (RBI) recently reported a contraction in GDP growth, which Das explained was influenced by the temporary slowdown in public expenditure due to the upcoming elections. He emphasized that this reduction in spending was a necessary measure to maintain electoral integrity.

Confidence in Growth

Das expressed confidence in India's economic fundamentals, stating that the long-term growth story is intact. He highlighted that various sectors are poised for recovery once the elections conclude and government spending resumes its normal pace.The RBI continues to monitor economic indicators closely, and Das remains optimistic about the resilience of the Indian economy in the face of short-term challenges.

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