India is ‘on track to become world’s fastest growing economy’: RBI

The Reserve Bank of India (RBI) said on Saturday (July 16) that the country’s economy remained resilient in the face of global headwinds. India’s biggest bank also predicted that India should continue on its path to becoming the world’s fastest growing economy as inflation declines from its recent peak. Reuters reports that RBI in a bulletin said recent southwest monsoon improvements and new plantings have boosted confidence that rural demand will soon catch up with urban spending and consolidate a recovery. “The ripple effects of geopolitical fallout are visible across multiple sectors, slowing the pace of recovery.”

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“Despite this crushing shock, there are sparks in the wind that ignite the economy’s innate strength and set it on course to become the fastest growing economy in the world, although it may be besieged by fears of recession.”

RBI did not give a timetable, however, according to it, the worst of the recent inflation spike will be over if the slowdown in commodity prices seen in recent weeks persists, as well as the reduction in pressures on the supply chain. supply.

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“There is now evidence that supply chain pressures are peaking globally and in India,” the bank said, adding that “a major source of upward inflationary pressures may ease.”

“External debt remains modest as a proportion of GDP and actually declined between March 2021 and March 2022,” RBI said.

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Reuters reports that according to figures released this week, India’s annual consumer inflation remained excruciatingly high above the 7% mark, above the central bank’s tolerance band for the sixth consecutive month.

(With agency contributions)


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