Reserve Bank of India (RBI) Governor Shaktikanta Das expressed confidence in India’s ability to tackle geopolitical challenges, emphasizing the nation’s resilience amid global uncertainties. Speaking at the World Economic Forum in Davos on Thursday, Das acknowledged concerns about slowing global growth but underscored India’s favourable position in dealing with these challenges.
Governor Das observed that there is a continuation of geopolitical flashpoints and the emergence of new ones. He noted that supply chain bottlenecks have not fully normalized. While inflation has been brought under control, individual countries have struggled to reach their targets, making the last mile particularly challenging. Despite these challenges, he emphasized that India, as an economy, has emerged from the recent crisis much stronger than anticipated.
Addressing concerns about the global economic landscape, Das highlighted the ongoing supply chain issues and the difficulty many countries face in achieving their inflation targets. However, he maintained a positive outlook for India, suggesting that the nation has weathered recent crises effectively.
In an interview on Wednesday, Governor Das emphasized the importance of maintaining an actively disinflationary monetary policy, even in the face of a sharp fall in core inflation. He affirmed that the Indian government remains committed to fiscal consolidation and anticipates a continuation of structural reforms to sustain economic momentum.
Das reiterated that the Indian economy exhibits robustness, enjoying stability both in terms of macroeconomic indicators and the financial sector. He reassured stakeholders that despite global economic headwinds, India remains resilient and well-prepared to navigate challenges.
The RBI Governor’s remarks align with the Indian government’s commitment to prudent fiscal policies and ongoing structural reforms aimed at bolstering the country’s economic foundation. India’s ability to control inflation and maintain stability in the face of global uncertainties has contributed to its positive economic narrative.
During his participation in the World Economic Forum over the last three days, the Governor has actively engaged in public speaking engagements, providing insights into India’s economic outlook and policies. Nevertheless, Das’s statements underscore India’s confidence in its economic resilience and its proactive approach to addressing geopolitical and economic complexities on the international stage.