Indian economy is ‘sailing smoothly’ amid global challenges, says RBI Governor Shaktikanta Das, ETCFO

India economy



Reserve Bank of India (RBI) Governor Shaktikanta Das shared an optimistic view of the Indian economy and highlighted its resilience amid global turbulence at CNBC-TV18’s Global Leadership Summit on Thursday.

Despite persistent global challenges – including inflation, geopolitical tensions and ongoing pandemic impacts – Das emphasized that the Indian economy remains stable, thanks to a robust external sector, strong economic buffers and the RBI’s proactive measures.

He said, “Indian economy is sailing smoothly.”

Das noted that the RBI has strengthened its regulatory framework and improved its supervisory functions to identify and address emerging risks. He recalled several challenges, including the crisis in the non-banking financial companies (NBFC) sector in 2019 and the onset of the Covid-19 pandemic, during which the RBI implemented swift measures to maintain stability.

The central bank’s approach has been both flexible and responsive, balancing inflation management with economic growth through tools such as the Monetary Policy Committee’s recent shift to a neutral stance.

While acknowledging that global risks remain – such as inflationary pressures, slower growth, rising government bond yields and volatility in gold and oil prices – Das pointed out that Indian policies have managed to moderate inflation from September. Moreover, he underlined that India’s merchandise exports have recovered in the current fiscal, while the digital payments landscape has become more efficient thanks to RBI’s initiatives.

Looking ahead, Das indicated that the RBI will soon issue guidelines on climate-related risks and urged regulators and financial institutions to remain vigilant against upcoming challenges.

The RBI Governor reaffirmed that the central bank’s primary objective remains to maintain a balance between banking sector stability and economic growth, underscoring that India’s economic fundamentals are sound despite a volatile global economy.

  • Published on Nov 14, 2024 at 1:10 PM IST

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