RBI optimistic about growth, says fundamentals of Indian economy sound

The fundamentals of the Indian economy, according to the RBI, are sound and strong and are facing strong global headwinds. These are the views of the Central Bank on financial stability, which expressed optimism about economic growth.

“The global economy is facing severe headwinds with the risk of a looming recession.

“The Indian economy is facing severe global headwinds. However, the sound macroeconomic fundamentals and the balance of the financial and non-financial sectors provide strength and resilience and create economic stability. credit,” the RBI noted.

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It said excessive demand for bank loans and the first signs of a revival in the investment cycle benefited from improving asset quality, returns to profitability and strong funding and liquidity of scheduled commercial banks (SCB).

The non-performing loan (GNPA) ratio of scheduled commercial banks fell to a seven-year low of 5.0 percent and net non-performing assets (NNPA) fell to a ten-year low. down 1.3 percent in September 2022, the report said.

India’s economy presents a picture of sustainability and financial stability has been maintained, RBI Governor Shaktikanta Das noted in the foreword of the same report.

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India’s external account remains well-organized and viable, he further noted, adding that by 2023, India is well positioned to occupy a leading position in the global arena. as the chairman of the G20.

“The biggest challenge for the G20 as a group is to restore the effectiveness of multilateralism,” Das pointed out. “At the domestic level, we are aware of the possibility of global risks, even as we gain strength from the strong macroeconomic fundamentals of the Indian economy.”

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He concluded by adding, “The Reserve Bank and other financial regulators remain vigilant and ready to ensure the stability and integrity of our financial system through appropriate interventions. , whenever necessary, for the benefit of the Indian economy”.



(Only the headlines and images for this report may have been developed by Business Standard staff; the rest of the content was generated automatically from the syndicated feed.)


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