RBI Governor Says India’s Economy Can Withstand External Shocks

The Story in Brief

RBI Governor Sanjay Malhotra said India’s macroeconomic fundamentals remain very strong after facing disruptions including the COVID-19 pandemic, the Russia-Ukraine war, conflicts in West Asia and US tariffs. Speaking at a post-Monetary Policy Committee meeting press conference in Mumbai, he said the latest West Asia conflict should be used to improve the country’s resilience.

Malhotra said growth remains resilient, while headline inflation is rising but underlying pressures are muted. He pointed to healthy bank and corporate balance sheets, continued government reforms, fiscal consolidation, strong institutions and robust policy frameworks as sources of confidence. He said India had emerged stronger from previous challenges and expected that to continue.

The Indian Opinion

The governor’s assessment offers reassurance, but it remains a policy-level view rather than proof that every risk has eased. External conflicts, inflation and trade measures can still affect households and businesses. Claims that India will emerge stronger from every disruption may sound optimistic if not supported by continuing data. The focus on bank health, reforms and fiscal discipline provides useful context for judging that confidence.

Source: thehindu.com

This story was synthesised by AI from the source linked above.

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