Geopolitical conflicts, geo-economic fragmentation, volatile commodity prices, uncertainty in trajectory of monetary policies and their macro-financial implications, increasing frequency and ferocity of climate shocks present a very deadly mix of challenges are putting policymakers to test, according to the Reserve Bank of India (RBI) governor Shaktikanta Das.
Speaking at a banking event in Mumbai organised by FICCI and Indian Banks Association, Das said, “We are living in highly uncertain times in an interconnected world. New risks are emerging from time to time. New sources of risk are also coming up. In such a scenario, building up further on resilience would be the best insurance against shocks and uncertainties. This holds good for all businesses and financial entities”
In this context, Das said, the Indian economy has remained resilient and continued to grow due to its higher reliance on domestic demand which enabled the economy to weather multiple global headwinds. “The continued thrust on capex by the government is also favourable for investment activity. It is now for corporates and other businesses to evaluate the current situation and future potential of India and move forward,” Das said.