RBI certain about Indian Economy’s competency to face Global Challenges

New Delhi: Reserve Bank of India (RBI) exuded confidence, ‘Comprehensive vaccination campaign, the capacity shown by the economic sector and the significant increase in exports have put the Indian economy in a very sound condition. Therefore, the economy will face the global challenges competently.’ Even the developed countries face challenges in countering the crisis developing after the Russia-Ukraine war. In this scenario, the confidence shown by the RBI in the country’s economy becomes important.

While expressing this confidence, RBI also mentioned the jolts delivered by the Russia-Ukraine war. RBI has noted in its report ‘The Indian economy was rapidly recovering. Positive changes were evident in many sectors. The benefits of this have come under threat given the Ukraine war.’ RBI assured that the Indian economy is facing up to the international challenges posed despite this. RBI has also listed the reasons for it. India implemented a massive vaccination program supplying many vaccines to the population. Therefore, the situation in India is not as grave as in the countries still fighting the Coronavirus. RBI pointed out that this is a positive sign for the economy.

RBI bulletin points out ‘At the same time, the Indian economy has demonstrated its strength even during the Coronavirus pandemic. Most of the industry sectors have recovered to the pre-Corona state, and some are still performing better. The fund supply from the banks also has increased. The process of employment creation is also gaining momentum. Tourism, hotel and construction industries have received the necessary impetus and the effects are already visible.’

RBI has also mentioned a significant increase in the country’s exports. RBI has clarified that the economy will face the challenges more competently given all this.

The bulletin also lists the challenges faced by the country. RBI has also warned that rising fuel prices, increasing inflation, and changing interest rates on the international level can affect the economy.