At the post-monetary policy press briefing, RBI Governor Shaktikanta Das addressed concerns regarding India’s GDP growth, stating that the growth rate of 6.7% in Q1 FY25 was constrained by central and state government subsidies. He mentioned that GDP growth would have exceeded 7% if the effect of subsidies was removed from the calculation. Das also noted that lower government expenditure in the first quarter impacted growth but expressed confidence that both central and state spending will align with the budget targets for the year. Madan Sabnavis, Chief Economist at Bank of Baroda, offered insights on the governor's remarks. He explained that while Q1 growth was slightly lower at 6.7%, the GDP growth projection for the full year remains at 7.2%. Sabnavis highlighted that consumer demand and investment have both revived, contributing positively to economic momentum. He emphasized that the gap between GDP and GVA (Gross Value Added) was influenced by the heavy subsidy outlays in the first quarter, possibly due to election-related front-loading. However, as tax collections remain strong and the need for subsidies lessens, GDP growth is expected to realign with the 7.2% target in the upcoming quarters. Sabnavis also reassured that the RBI can continue focusing on inflation without concern about hindering growth, as the economy is on the right trajectory.