, is noteworthy. there is also recent evidence of household inflation expectations becoming more anchored. 2 headline inflation, however, remains vulnerable to recurring and overlapping food price shocks coming from global factors and adverse weather events. the frequency and intensity of such shocks have increased in recent period. monetary policy in such a scenario needs to remain watchful and actively disinflationary while supporting growth. i must add that our actions over the past one and a half years did not engender any financial stability risks as witnessed in some advanced economies in the early part of 1 / 6 bis - central bankers'speeches 2023. this may be attributed to the regulatory requirements prescribed by the reserve bank which banks are expected to follow to manage their interest rate risk. these requirements act as safeguards for future stress that may arise when the upturn of the interest rate cycle takes place. 3 on the exchange rate front, the indian rupee ( inr ) has exhibited low volatility and orderly movements relative to peers despite elevated us treasury yields and a stronger us dollar. 4 movements in the inr are consistent with the strength of the underlying macro - fundamentals and the reassuring availability of buffers. growth drivers and opportunities as many business leaders are present here, let me now dwell upon india's growth drivers and the opportunities that lie ahead. the indian economy rebounded strongly from the covid - induced contraction of 5. 8 per cent in 2020 - 21 to a growth of 9. 1 per cent in 2021 - 22 and 7. 2 per cent in 2022 - 23. india's real gdp is expected to grow by 6. 5 per cent in both 2023 - 24 and 2024 - 25, making it one of the fastest growing large economies in the world. 5 in fact, india is already the third largest economy in the world in terms of purchasing power parity ( ppp ). despite global slowdown, the indian economy has remained resilient and continued to grow due to its higher reliance on domestic demand which enabled the economy to weather multiple global headwinds. although india has made rapid strides in external openness through trade and financial channels and gained competitiveness, its dependence on domestic demand provides a cushion against external shocks. at the same time, various structural reforms implemented in areas of banking, taxation, inflation management and manufacturing sector, etc. over the last few years, have laid the foundation for sustainable and higher growth. we have moved from an era of twin deficit and twin balance

; scaling up dairy, poultry and fishing ; and creating marketing infrastructure. private sector can accelerate farm - firm ( i. e., agri - industry ) linkage and improve the efficiency of the entire value chain right up to the end customer. as regards the manufacturing sector, even as its share in the economy has been around 17 - 18 per cent over the years, it has potential to accelerate its contribution to growth and employment. india's demographic advantage with its young labour force also presents a unique opportunity to become a key player in global manufacturing. it is important for us to be part of the global supply chains which are undergoing realignments in the fragmented global economy. initiatives like the production - linked incentive ( pli ) scheme create conducive conditions to enhance the share of manufacturing in our gdp. sectors such as smart phones, large - scale electronics, pharma, food processing, auto and auto components have recorded good performance under the pli scheme. there is also huge potential in emerging areas such as aerospace and defence, low - carbon technologies, electric vehicles and semiconductors. our efforts towards building robust public digital infrastructure, which is fostering digitisation and ease of doing transactions across the spectrum, will continue to provide strong fillip to technology adoption and productivity. at present, the services sector contributes the largest share in india's gdp and remains an anchor of overall growth. the indian services sector is fast adopting new technologies such as artificial intelligence, internet of things, cloud computing and data analytics to improve service delivery, reach, and competitiveness. the newly emerging start - ups are also largely concentrated in the services sector. there is a steady shift from low - skill consumer - oriented services towards more technology - enabled business services. indeed, there is a case for indian businesses to recognise this undercurrent and work towards upscaling their activities to meet the external demand in this sector. in fact, india commands a strong external position, thanks to the strength of our services exports, which have largely remained resilient. they have supported india's current account deficit, even as merchandise exports have been under pressure in the face of weakening global demand. the current account deficit to gdp ratio has remained under 2 per cent for almost 10 years. india's services exports are diversifying from information technology ( it ) related services to other professional services such as 3 / 6 bis - central bankers'speeches business development, research and development, professional management, accountancy and legal