Resilient Indian Economy Fuels Global Growth Amid Volatile Markets
The Indian economy remains a global growth driver despite a volatile economic backdrop, supported by strong macroeconomic fundamentals and policies. The RBI's Financial Stability Report highlights India's banking sector resilience and the need for sustained economic growth to achieve the long-term vision of a developed nation by 2047.
- Country:
- India
Amidst a challenging global economic landscape, the Indian economy continues to act as a vital engine for global growth. This is largely owing to its sound macroeconomic fundamentals and prudent policies, as highlighted by the Reserve Bank of India (RBI) in its latest Financial Stability Report.
The report underscores that despite elevated economic uncertainties and volatile financial markets, India's domestic financial system demonstrates resilience. This strength is bolstered by healthy balance sheets across banks and non-banking financial companies (NBFCs), augmented by the easing of financial conditions and accommodative monetary policies.
The growth trajectory is impressive, with India's GDP increasing by 6.5% in the 2024-25 fiscal year, fulfilling RBI's projections. As India aspires to become a developed nation by 2047, sustaining an average growth rate of 8% at constant prices over the next couple of decades is crucial, according to the 2024-25 Economic Survey.
(With inputs from agencies.)
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