Mumbai: Reserve Bank of India (RBI) (RBI) (RBI) (RBI) (RBI) (RBI) (RBI) In April, India’s economy was relatively small, and calibration policy support could help the country turn global volatility into opportunities and strengthen its position in the emerging world economic environment.
The central bank said that given its already established trade links, India is expected to benefit from supply chain readjustment, diversified FDI sources and participation with global investors seeking resilience and size. In addition, India said in an article on the “economic situation” in the announcement that India continues to provide an important buffer for the current account in terms of exports of services and inflows of remittances.
“While the declining global economic outlook may affect India’s economic growth through weaker external demand, domestic growth engines … consumption and investment have less impact on external headwinds,” RBI said.
Despite global trade tensions, strong domestic growth impulses and macro-foundations of voices help the economy stay resilient
said, adding that the monsoon high forecast has boosted the prospects for the agricultural sector.
India’s retail inflation fell to 3.34% in March as food prices continued to fall, cutting room for deeper central bank tax rates on fears that the U.S.-China trade war could hit global growth.
The article also points out that while monetary pressures may partially offset this gain, the decline in global commodity prices may ease the pressure on inflation in commodity further countries.
In another article, the Reserve Bank of India’s survey on “Confidence in Rural Consumers in India: Bridging the Gap” shows that rural households’ sentiment towards the overall economy and employment has increased significantly since 2022, and optimism about the best prospects of the year continues.
The survey said that while inflation concerns remained, perceptions of current inflation and expectations for future inflation showed gradual easing.
Meanwhile, the real effective exchange rate of Indian rupee (REER) continued to be moderately moderate, falling to 101.49 in March and 102.37 in February. Reer increased from 103.66 in January 2024 to 108.14 in November 2024, and then increased to 107.20 in December 2024.
