Reserve Bank of India (RBI) Governor Shaktikanta Das said that the risks to Indian economy's financial stability are mainly emerging from global spillovers and geopolitical worreis, but the financial system is exhibiting underlying strength and resilience to withstand these shocks.
These remarks were made in the foreword of the Financial Stability Report for June, issued Thursday. “Our goal is to confront every difficulty the Indian financial system faces, whether internal and foreign, with fortitude and creative solutions. The Reserve Bank and other authorities are steadfast in their commitment to fostering inclusive economic growth and preserving financial stability, Das said. He acknowledged that the rapidly changing international environment was having a substantial impact on India as well as other developing market countries and some advanced economies.
However, India's external sector is strong enough to weather current trade disruptions and portfolio outflows. Das said, India's inherent strength and the strength of its macroeconomic fundamentals were fueling a steady resurgence. "We have been aggressive and quick on our feet in our policy responses in a dynamic environment with significant uncertainty. To promote sustainable and inclusive growth, we have been adjusting our measures in accordance with the situation and working to maintain macroeconomic and financial stability.