Weak growth in consumption, global uncertainty pose challenges: Shashanka Bhide
growth may have outstripped expectations in the second quarter of fiscal 2024 but Shashanka Bhide, an external member of the Monetary Policy Committee, believes that there are challenges to optimistic growth assessments from weak consumption and an uncertain global environment.
«I believe there are vulnerabilities to this growth assessment in the sense that there are a few major drivers on the demand side. We see weaker growth in consumption.
We also honestly do not see external demand being a major driver,» Bhide said at an event organised by State Bank of India on Thursday.
«On the supply side, we have had this weak monsoon and therefore it has ramifications. Finally, there is this issue we have had I think for the last two years — the great uncertainty,» he said.
In the July-September quarter, India's GDP growth was 7.6%, surpassing market expectations as well as the Reserve Bank of India's October projection of 6.5%, data released late last month showed.
