Resilient Growth

despite Global Challenges: RBI Governor

global economy is mired by geopolitical uncertainty, elevated inflation, volatile financial markets, including banking sector stress, food insecurity and debt distress, among others. Mr Das noted that,ontheupside,therehasbeenaslow upturninglobalgrowth,easingofsupply chains, moderation of inflation, normalization of financial markets and reopening of Chinese markets, which have all improved sentiments, but the uncertaintycontinues.

Amidst global churn, the Indian economy has shown resilience and has created requisite buffers to meet geopolitical and domestic challenges. He added that the Indian economy is projectedtogrowat6.5percentthisyear. Moreover, Mr Das added, moderate inflation, robust agriculture performance, predictions of normal monsoon, impressive services sector performance, rise in bank credit, revival of private investment and increase in capacity utilization by industry, among others, are the other major positives for theIndianeconomy.

On macroeconomic stability and the financial sector, the RBI Governor said thatNPAshavereducedandthefinancial sector is resilient. Besides, India has the advantage of demography which would add to the country’s potential output. Mr Das that there are downside risks to growth from global deceleration, the El Ninofactoraffectingmonsoons,etc.,and that all of these factors will need to be handledcautiously.