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© Reuters. FILE PHOTO: Customers buy fruits and vegetables at an open air evening market in Ahmedabad, India, August 21, 2023. REUTERS/Amit Dave/File Photo

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DAVOS, Switzerland (Reuters) – Inflation in India is moderating and steadily approaching the central bank’s 4% target while growth prospects remain robust, Reserve Bank of India chief Shaktikanta Das said on the sidelines of the World Economic Forum annual meeting.

“Inflation has come under control and is within the band we have, which is 2% to 6%. Target is 4%,” Das said in a fireside chat at Davos organised by Invest India, the country’s national investment promotion and facilitation agency.

Core inflation has started steadily coming down and gives confidence that monetary policy is working, he added. “RBI remains fully committed to bring inflation down to the target of 4%.”

Annual retail inflation rose the fastest in four months in December but core inflation, which strips out volatile food and energy prices, dropped to a four-year low of 3.8% to 3.89% from 4.05% to 4.2% in November.

Das said India’s economic growth prospects remain robust, noting signs of sustained growth momentum in coming years.

The reduction in exchange rate volatility in India in recent years has renewed investors’ confidence in the economy, he added.