India's 7% growth momentum faces headwinds from capital flows, investment gaps

India's sustained 7% growth rate faces mounting obstacles from capital attraction, investment constraints, and judicial hurdles, according to RBI Monetary Policy Committee member Saugata Bhattacharya. Bhattacharya cautioned that India can no longer rely on either a growth differential or interest rate differential to draw foreign capital inflows.

The remarks highlight structural challenges threatening India's economic momentum, including gaps in domestic capital formation and bottlenecks in judicial processes that may constrain long-term investment growth.