Winning Bizness Desk
Mumbai. Reserve Bank of India (RBI) Governor Shaktikanta Das has expressed confidence in the resilience of the Indian economy, stating that it is well-prepared to handle the impact of any global events. His remarks come amid a series of positive assessments from international rating agencies and brokerage firms about India's economic stability and growth prospects. Despite global uncertainties, Das emphasized that the country’s economy remains robust, with a balanced trajectory of growth.
A Strong Economy Ready for Global Challenges
Speaking at the inaugural event of the Kochi International Foundation on November 16, Das highlighted the strength of India’s financial and economic systems. He noted that these systems are adequately equipped to absorb shocks arising from global volatility. Furthermore, he underscored the strength of India’s external sector, which plays a critical role in safeguarding the economy against external risks.
Current Account Deficit Under Control
Addressing concerns about the current account deficit (CAD), Das pointed out that it remains manageable at 1.1% of the GDP. This marks a significant improvement compared to the years 2010 and 2011, when the CAD hovered between 6% and 7%. He described the current deficit level as a testament to the country’s improved economic fundamentals.
Stability and Strength: Hallmarks of Indian Growth
Das emphasized that India’s economy reflects a stable and strong growth narrative. He highlighted the country’s substantial foreign exchange reserves, which stand at approximately $675 billion, one of the largest globally. This robust reserve position provides a strong buffer against external shocks, further reinforcing economic stability.
Inflation Concerns and Outlook
Discussing inflation, the RBI Governor acknowledged recent fluctuations but expressed optimism about its medium-term outlook. He noted that food inflation has been a contributing factor, with the inflation rate rising from 5.5% in September to 6.2% in October. However, he assured that the situation remains under control and is being closely monitored.
#### Global Resilience and Domestic Optimism
Das’s remarks come at a time when global economic conditions remain uncertain, marked by geopolitical tensions and financial market volatility. Against this backdrop, India’s ability to maintain a steady growth path is a significant achievement. The RBI Governor’s assurance reinforces confidence in India’s economic fundamentals, signaling a strong foundation for sustained development. As international agencies and domestic institutions alike continue to project positive outlooks for India, the country is poised to navigate global challenges with resilience and optimism.
