India's Economic Stability
India is recognized as an "anchor of stability in a volatile world" according to RBI Governor Sanjay Malhotra. The nation exhibits resilient growth and robust macroeconomic fundamentals.
Key Economic Indicators
- Strong forex reserves
- Low inflation since February
- Narrow current account deficit
- Credible fiscal consolidation path
- Improved bank and corporate balance sheets
Factors Contributing to Stability
- Steadfast attention to ensuring:
- Macroeconomic stability
- Price stability
- Financial stability
- Policy stability
- Continuity in reform momentum and adoption of global best frameworks
Global Economic Concerns
- Potential correction in global stock markets, especially in technology stocks
- Impact of US tariffs and large public debt on the global economy
- Gold prices acting as a barometer of global uncertainties
Monetary Policy
- Current repo rate: 5.5%, with a neutral monetary policy stance
- India's unique policy framework:
- Central bank independence with accountability
- Government sets inflation targets in consultation with the RBI
- Interest rates set by a panel comprising external and internal RBI members