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RBI Monetary Policy Committee (MPC) member Jayanth R Varma has said that India's Gross domestic product (GDP) growth appears to be 'very fragile' and it may fall short of what the country needs to meet the aspirations of its growing workforce.

Explaining further, Varma said rising EMI payments increases the pressure on household budgets and dampens spending, and exports are struggling in the face of global factors. While noting that high interest rates make private capital investment more difficult, he said the government is in fiscal consolidation mode, thus reducing the support to the economy from this source. He said ‘Because of all these factors, I fear that growth may fall short of what we need to meet the aspirations of our growing workforce given our demographic context and income level’.

Talking on high inflation, RBI MPC member said 2022-23 is a year of high inflation due to various supply shocks as well as the delay in monetary tightening during the second half of 2022-23. However, he expects inflation to come down significantly in 2023-24. He also anticipates a gradual glide path that brings inflation down close to the target.