Economy

RBI Governor says India’s economy resilient but no room for complacency

Shaktikanta Das, Governor, Reserve Bank of India has said India’s economic resilience continues to remain in tact though rising debt distress in South Asia is a cause for concern. In an interview to the Financial Times, Das said that there is was no room for complacency.

However Das also said that global economic challenges are rising.
“Net-net, India is far better placed than almost all other countries,” he told the news organisation. The global challenges “will have their spillovers and will have their impact on India,” he said, adding that the RBI is alert and continuously monitoring the situation.

“We are quite concerned about the debt distress in all these countries because we have a lot of trade relations with these countries,” he said while discussing the situation in India’s neighbourhood. “It’s a matter which we are looking at with a lot of interest,” Das added.

According to the FT, Das also said that “India’s relatively conservative approach to Covid-19 stimulus spending had helped to keep a lid on inflation.”

Last month, Das while announcing the monetary policy, said that India is seen as a bright spot in a gloomy world. However the central bank reduced the country’s growth forecast to 6.8 per cent for the current fiscal year from the earlier 7 per cent.

India’s bank credit growth has been growing at double digit. Credit growth to industry increased by 13.1 per cent year on year in November from a mere 3.4 per cent recorded in the same month in the previous year. Overall, non food credit growth stood at 17.6 per cent in November 2022 compared to 7.1 per cent in the same month a year ago. A high credit growth is an indicator of robust economic activities. This is particularly crucial for India as it looks to focus on growth while settling into the post Covid phase amid rising geopolitical tensions driven by the Russia-Ukraine war.

IN Bureau

Recent Posts

Air Force to phase out MiG-21 fighter jets by September 2025, will be replaced by Tejas Mk1A: Defence officials

The Indian Air Force will be phasing out phasing out its MiG 21 fighter jet…

13 hours ago

Business, tech, research, education emerged as pillars of India-UK cooperation: MEA

Foreign Secretary Vikram Misri on Tuesday enlisted areas that have emerged as pillars of India-UK…

14 hours ago

”Very grateful for support, collaboration of Indian authorities throughout repair, recovery process’, UK expresses thanks after F-35 departs India

A British High Commission Spokesperson on Tuesday, expressed gratitude to the Indian authorities for the…

17 hours ago

PM Modi’s historic Maldives visit to enhance India’s Neighbourhood First policy

Prime Minister Narendra Modi will embark on a first State visit to Maldives for the…

17 hours ago

Earthquake of magnitude 6.3 hits Kamchatka East Coast

A strong earthquake of magnitude 6.3 was recorded off the East Coast of Kamchatka, the…

17 hours ago

India’s core industries output grows 1.7% in April

India's core industries comprising eight sectors reported 1.7 per cent growth in June 2025, down…

21 hours ago