Easing cycle may continue as reforms lift growth'

MPC member Ram Singh tells Kshipra Petkar why India can sustain growth above 7.5% without triggering inflation. Citing structural reforms, rising productivity, and subdued price pressures, he argues that potential growth has increased, the output gap may still be negative, and the easing cycle is not yet over. Excerpts:

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You suggest the economy can sustain growth above 7.5% without inflationary pressure. What indicates that India’s potential growth has structurally increased?

I believe India's potential growth has risen to above 7%, with the possibility of reaching 8%. Sustained public investment in physical and digital infrastructure, combined with manufacturing and logistics reforms, has improved the economy’s efficiency. The scale of digitalisation — including UPI transactions exceeding 15 billion per month — reflects deeper formalisation and productivity gains.