The Reserve Bank of India (RBI) is optimistic that the Indian economy is resilient and is on target to become the fastest growing economy in the world despite concerns about the global economies entering a recession.
“There are sparks in the wind that ignite the innate strength of the economy and set it on course to becoming the fastest growing economy in the world, though besieged it might be by fears of recession,” RBI’s monthly bulletin stated.
According to the reports, amid “weak global cues and high-risk aversion in financial markets” that are driving away portfolio investors, the Indian economy has been demonstrating signs of resilience and dynamism. According to RBI, the US dollar’s unwavering strength is bringing down all currencies.
On the strength of the southwest monsoon’s recovery and a rebound in sowing activities, the agriculture sector has shown encouraging signals, boosting hopes that rural demand will eventually keep pace with urban consumption and solidify the recovery, it added. The recent peak in domestic inflation has been combined with this reprieve.
Retail inflation decreased slightly in June to 7.01 percent, according to preliminary statistics provided by the National Statistical Office (NSO) on July 12.
Europe is showing indications of anxiety as a result of the Russia-Ukraine war. Many nations are struggling with rising inflation, food banks in Italy are feeding more people, and Germany is considering rationing natural gas and restarting coal plants.
