The RBI’s Bulletin highlights that India must grow 8-10 percent per annum over the next decade to reap benefits from its demographic dividend arising out of a young population
The Reserve Bank of India (RBI) has emphasized that the Indian economy needs to grow at a rate of 8-10 per cent per annum over the next decade to reap the demographic dividend. The RBI believes that India s favourable demographics will help it break the low middle income barrier and harness its young and rising labor force. The working-age population is expected to grow at a rate of 9.7 million in 2021-2031 and 4.2 million in 2031-2041 per year, making a focus on labour quality essential for the growth strategy.
They are flagging off risks from extreme weather conditions that would pose risks to inflation along with risks from the geopolitical tensions that could flare up crude prices. In their assessment of the economy, the RBI economists in its latest monthly bulletin also say that the economy has to grow 8-10 percent every year to reap the demographic dividend.
The Reserve Bank of India (RBI) has stated in its monthly bulletin that the Indian economy is sustaining the momentum achieved in the first half of the current financial year. RBI Governor Shaktikanta Das noted that the investment cycle in India is gaining steam, driven by sustained government capex, rising capacity utilisation, increased flow of resources to the commercial sector, and policy support from schemes like the production-linked incentive (PLI scheme).