Indian economy achieves robust recovery despite global challenges: RBI Governor

The global financial system has faced notable strains since early March 2023 due to banking turmoil in the United States and Europe

June 29, 2023

This was a result of sustained growth in bank credit, low levels of non-performing assets, and ample capital and liquidity buffers

Advancements in technology and digitalization have facilitated wider financial intermediation, presenting new avenues for growth and financial inclusion

The Reserve Bank and other financial regulators are making strong efforts to ensure financial stability in the event of unforeseen challenges

Policymakers should prioritize a delicate balance of policy trade-offs, instilling confidence, and supporting sustainable growth

The Indian economy has achieved a robust recovery and is among the fastest-growing major economies, despite facing increased global uncertainties and formidable challenges, according to Reserve Bank Governor Shaktikanta Das.

This was a result of sustained growth in bank credit, low levels of non-performing assets, and ample capital and liquidity buffers. 

Das said that the Reserve Bank and other financial regulators are making strong efforts to ensure financial stability in the event of unforeseen challenges.

Das emphasized the importance of policymakers worldwide prioritizing a delicate balance of policy trade-offs, sustaining macroeconomic and financial stability, instilling confidence, and supporting sustainable growth.

Over the past three years, the global economy has endured successive and significant shocks, such as the COVID-19 pandemic, prolonged geopolitical tensions, rapid monetary policy adjustments, and a recent banking turmoil. Das expressed concern about the threat of economic fragmentation to macroeconomic prospects, particularly among emerging markets and developing economies.

The governor also noted that recent banking challenges in certain advanced economies underscore the need to reevaluate global standards for financial sector regulations. While international cooperation among regulators plays a crucial role in addressing these concerns, Das further stressed the significance of unwavering commitment from both regulators and regulated entities in India to maintain a stable financial system.

Source: The Hindu

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