India, which is currently the fifth-largest economy, will become the fourth largest by 2026, matching the German economy, he said, adding that data will play an important part in this transformation.

Reserve Bank of India (RBI) deputy governor Michael Patra has said India is expected to become the third-largest economy in the world, surpassing Japan, by 2027. India, which is currently the fifth-largest economy, will become the fourth largest by 2026, matching the German economy, he said, adding that data will play an important part in this transformation.

“The impetus for transformation has come calling as India… prepares to be among the fastest growing economies and an engine of global growth (second-largest contribution to global growth in 2022),” Patra said. Patra’s comments came at the commemoration of 50th year of basic statistical returns (BSR) system, which is a exhaustive data collection system maintained by the central bank. In this economic environment, banks have an important role in providing financial services to cater to the rising population, and with data playing its part, it is up to all stakeholders to keep the BSR system robust, Patra said.

“We in the RBI regard the BSR as living returns, continuously alive to structural changes in the economy and in the banking system, and ready to quickly adapt and incorporate,” he said. Citing the importance of the BSR system, Patra said it throws up trends on structural changes in the banking system, including shift to personal loans. Loans to individuals now have over 40% share in overall credit, compared with less than 10% in 2000. The share of industry has come down from 60% to 27% during 1972-2022, he said. Similarly, the number of deposit accounts per thousand population has increased from 43 in 1972 to over 1,600 now, with households accounting for 63% of total bank deposits.

RBI’s central board meets ahead of MPC meeting

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The RBI on Monday said a meeting of its central board of directors held under the chairmanship of governor Shaktikanta Das. The board meeting was held ahead of the off-cycle monetary policy committee (MPC) meeting scheduled for November 3. The central bank had earlier announced an additional meeting of the MPC under the RBI Act, which requires the apex bank to send a report to the central government when it fails to meet the inflation target.

https://www.financialexpress.com/economy/data-to-be-key-in-indias-economic-rise-rbi-deputy-governor-michael-patra/2762269/