Feasible GDP growth over the medium term is 6.5-8.5%, says RBI paper

Price stability is a necessary precondition for strong and sustainable growth, it adds

The feasible range for medium-term steady state GDP growth in India works out to 6.5-8.5 per cent, the currency and finance report of the Reserve Bank of India.

The report for 2021-22 year has the theme “Revive and Reconstruct” in the context of nurturing a durable recovery post-Covid and raising trend growth in the medium term.

“Reducing general government debt to below 66 per cent of GDP over the next five years is important to secure India’s medium-term growth prospects,” the report said.

The report prioritised inflation over growth as it said price stability is a necessary precondition for strong and sustainable growth.

RBI