MUMBAI, Sept 5 Reuters Despite the moderation seen in India39;s first quarter gross domestic product growth GDP, the South Asian economy is likely to achieve full year growth of 7.2 as projected, the Reserve Bank of India Governor Shaktikanta Das said on Thursday.

India39;s economic growth slowed to 6.7 yearonyear in the AprilJune quarter, below the polled estimate of 6.9 and the RBI39;s projection of 7.1, as a decline in government spending during national elections weighed.

Fundamental growth drivers of the Indian economy are not slowing, they are gaining momentum and this gives us confidence to say that the Indian growth story remains intact, Das said in a speech at the annual FIBAC banking conference.

Das said agriculture should perform better during the rest of the year due to a good monsoon and aid a further pickup in rural demand, while strong investment activity would also see a further boost from government capex picking up pace.

It is evident that India is on a sustainable growth path. Consumption and investment demand, the two main drivers of growth, are growing in tandem. Overall, the RBI39;s projection of GDP growth at 7.2 for 202425 does not appear out of place.

Das said currently the balance between inflation and growth is well poised but reiterated the need to maintain price stability to support growth over the medium to longer term.

The pace of disinflation has been frequently interrupted by volatile and elevated food inflation, the chief said….