sustainable growth over the medium and long term. the government ’ s continued thrust on capital expenditure is creating additional capacity and nurturing the much - awaited revival in the corporate investment 2 estimated at 1. 429 billion in the latest world population report 2023. 3 68 % of the total population belongs to 14 - 68 years. cycle. 4 the indian economy has also made rapid gains in openness and has gradually integrated with the global economy over the years. consequently, it is getting increasingly exposed to the vagaries of global headwinds. it is, however, pertinent to note that india ’ s growth in the last few years is mainly driven by robust domestic demand, especially private consumption and investment, amidst the global slowdown 5. looking ahead, we expect real gdp to grow by 6. 5 per cent during 2023 - 24. in all likelihood, india will remain among the fastest growing large economies in 2023. regulatory and supervisory initiatives 12. in the last few years, we have put in place a stronger and more robust regulatory and supervisory framework. this has served us well in withstanding the scourge of the pandemic and the global financial market turmoil after the outbreak of geo - political hostilities. our approach to regulation and supervision has been essentially premised on three pillars. 13. first, our focus in recent years has been to strengthen governance and assurance functions within our regulated entities – banks and non - bank financial companies ( nbfcs ). the emphasis has been on building an environment of trust, transparency and accountability in the financial sector. some of our regulatory measures include implementation of ( i ) liquidity coverage ratio ( lcr ) and net stable funding ratio ( nsfr ) ; ( ii ) governance guidelines for commercial 4 public investment multiplier on private investment and real gdp is found well over unity at 1. 2 and 1. 7, respectively, over a three - year period ( monetary policy report, april 2023 ). 5 global factors explain only 17 - 18 per cent of the variability in india ’ s gdp growth, reflecting dominance of domestic growth drivers ( monetary policy report, april 2023 ). banks ; ( iii ) scale - based regulatory ( sbr ) framework for non - banking financial companies ( nbfcs ), among others. the capital and liquidity requirements are uniformly applied to all scheduled commercial banks ( scbs ), irrespective of their asset size and exposure. 6 latest supervisory data indicates that all the banks

the general public : promise or false hope? national bureau of economic research ; working paper 30277, july undertake prompt and pre - emptive actions. the unequivocal reassurance communicated to the public and other stakeholders through these statements along with our timely measures eased financial conditions considerably while unfreezing markets and reviving trading activity. 20. effective forward guidance reinforced the impact of our conventional and non - conventional monetary policy actions during the pandemic. as noted earlier, our forward guidance on continuing with accommodative monetary policy amidst transient inflationary shocks was highly effective. our asset purchase programme – g - sec acquisition programme ( g - sap ) – provided an upfront commitment to a specific amount of open market purchase of government securities. this measure anchored interest rate expectations and facilitated monetary transmission. 21. recalibrating the policy path after the pandemic presented its own set of communication challenges. reversal of certain open - ended policies required careful and nuanced communication to align market expectations with our assessment. illustratively, the governor ’ s policy statement of february 2021 addressed the fears of reversal of monetary policy which were building up due to resumption of liquidity absorption through vrrr operations in january 2021. this was done by explicitly explaining the rationale for the reintroduction of vrrr auctions. similarly, liquidity rebalancing was set in motion in august 2021 through periodic upscaling of the 14 - day main vrrr auction, with the explanation that liquidity conditions need to “ evolve in sync with the macroeconomic developments to preserve financial stability ”. 22. the assurance given to the markets, the people and all other stakeholders through statements like “ we will continue to think and act out of the box, planning for the worst and hoping for the best ( june 2021 ) ; “ the reserve bank remains in ‘ whatever it takes ’ mode, with a readiness to deploy all its policy levers - monetary, prudential or regulatory ” ( august 2021 ) demonstrated the central bank ’ s commitment to remain steadfast in safeguarding trust and confidence in the domestic financial system. 23. in the subsequent tightening phase which commenced in april - may, 2022, the scale and nature of communication has been appropriately fine - tuned and calibrated, so as to ensure successful transmission of policy rate hikes. 24. we also recognise that communication has to be balanced – too much of it may confuse the market while too little may keep