Stability & Strength: India's Economic Position Amid Global Challenges

RBI Governor Shaktikanta Das reassured that India's economy is resilient against global upheavals. Despite external pressures, India's current account deficit is stable, and inflation is moderating. The RBI aims for further financial sector reforms to enhance credit delivery, particularly for small businesses and farmers.

The Reserve Bank of India's Governor, Shaktikanta Das, expressed confidence in the robustness of India's economy against global uncertainties during an event organized by the Kochi International Foundation. He highlighted that the economy is strong, with a current account deficit of just 1.1%, in contrast to previously higher levels.

Das emphasized India's substantial foreign exchange reserves of $675 billion, positioning the country well amidst global economic pressures. Although inflation saw a slight uptick to 6.2% in October, up from September's 5.5% due to food costs, he believes it is manageable and likened it humorously to 'an elephant out for a walk.'

In efforts to prevent deep-rooted inflation, the RBI resisted printing additional currency and maintained the interest rate at 4%. Looking ahead, Das underscored the necessity for structural reforms, with plans to enhance credit systems like the Unified Payments Interface, benefiting small entrepreneurs and farmers.

(With inputs from agencies.)