Crossing the hurdles: India’s solid economic recovery despite global headwinds, says RBI
Virendra Pandit
New Delhi: Post-pandemic, the Indian economy has made a solid recovery despite global headwinds, the Reserve Bank of India (RBI) said on Wednesday.
RBI Governor Shaktikanta Das said not only has the Indian economy made a solid recovery but it is among the fastest-growing large economies despite heightened uncertainties and formidable headwinds, the media reported.
He said that financial stability is non-negotiable and all stakeholders in the financial system must work to preserve this at all times.
“The Reserve Bank and the other financial regulators remain steadfast in their commitment to safeguarding financial stability in the face of potential and emerging challenges,” he said in a foreword to Financial Stability Report (FSR).
In this fragile global milieu, he said, balancing the policy trade-offs, preserving macroeconomic and financial stability, shoring up confidence, and supporting sustainable growth are top priorities for policymakers all over the world.
Over the last three years, the global economy has been navigating successive high-amplitude shocks, such as the Covid-19 pandemic waves, protracted geopolitical hostilities, rapid monetary policy tightening, and the recent banking turmoil.
Economic fragmentation is threatening macroeconomic prospects, especially among emerging market and developing economies (EMDEs), he added.
