growth drivers are gaining momentum. this gives us confidence to say that the indian growth story remains intact. private consumption, which is the mainstay of aggregate demand with a share of around 56 per cent in gdp, has rebounded to 7. 4 per cent growth from a feeble 4 per cent growth in the second half of the previous year. this reconfirms the revival of rural demand. the other important driver of growth, i. e., investment, which accounts for around 35 per cent of gdp, grew at 7. 5 per cent, keeping up with its recent momentum. thus, more than 90 per cent of gdp expanded at a robust pace and materially above 7 1 / 6 bis - central bankers'speeches per cent. the headline number, however, came lower against the backdrop of muted government expenditure of both the centre and the states, perhaps due to the lok sabha elections. excluding government consumption expenditure, gdp growth works out to 7. 4 per cent. on the supply side, while agriculture grew modestly at 2 per cent in q1, it is likely to perform better, going forward, on the back of good progress of monsoon, improved kharif sowing, and good moisture conditions for rabi crops. industry and services recorded a growth of 7. 4 per cent and 7. 7 per cent respectively in q1, underscoring continued strength in economic activity. construction activity remained robust growing at 10. 5 per cent. 1 according to the rbi's latest data2, bank credit to agriculture and allied activities remained robust and increased by 18. 1 per cent ( y - o - y ). credit to industry surged by 10. 2 per cent ( y - o - y ) in july 2024 as compared to 4. 6 per cent in july 2023. within industry, credit to msmes also grew at 14. 4 per cent ( y - o - y ). bank credit to industries such as chemicals and chemical products ; food processing ; petroleum, coal products and nuclear fuels ; and infrastructure has been quite strong in july 2024. the enhanced credit flow to industry along with an all - time high - capacity utilisation points to an upturn in the investment cycle, as reflected in the nso data. it is evident that india is on a sustained growth path. consumption and investment demand, the two main drivers of growth, are growing in tandem. government expenditure of the centre and the states is likely to pick up pace

shaktikanta das : india at an inflection point - some thoughts inaugural address by mr shaktikanta das, governor of the reserve bank of india, at the annual financial institution benchmarking and calibration ( fibac ) 2024 conference, organised jointly by the federation of indian chambers of commerce and industry ( ficci ) and the indian banks'association ( iba ), mumbai, 5 september 2024. * * * i am happy to be back at the fibac annual conference. this conference is special as it brings together industry leaders, financial sector players and regulators on a single platform to discuss vital issues of contemporary relevance. i would like to congratulate the ficci and the iba for organising this annual conference. the indian economy is now at a critical juncture. massive changes are taking shape in various economic sectors and markets ; and the country is geared for orbital shifts. our nation's journey towards becoming an advanced economy is drawing strength from a unique blend of factors : a young and dynamic population, a resilient and diverse economy, a robust democracy, and a rich tradition of entrepreneurship and innovation. in this background, i have chosen to speak on the topic " india at an inflection point : some thoughts ". i have structured my talk under four major themes. first, i would speak on india's growth prospects and the approach that we need to follow going forward. second, i would dwell upon recent developments in inflation and monetary policy. third, i propose to highlight certain issues relating to strengthening our financial sector. finally, i would spell out certain expectations from the financial sector. i. growth prospects the indian economy rebounded strongly from the covid - 19 induced contraction, growing at an impressive annual average rate of 8. 3 per cent during the last three years. for the current financial year, the reserve bank has projected a growth rate of 7. 2 per cent. the imf has also revised india's gdp growth upwards to 7. 0 per cent, citing improved prospects for private consumption, particularly in rural areas. two days ago, the world bank has also upgraded india's growth forecast to 7. 0 per cent for 202425. the national statistical office ( nso ) has placed india's gdp growth at 6. 7 per cent in q1 of 2024 - 25. notwithstanding the moderation in growth from the previous quarter and below our projection for q1, the data shows that the fundamental