New Delhi, Jan 1 (IANS) — The Indian economy continues to grow strongly, supported by robust domestic demand, benign inflation, and prudent macroeconomic policies, the Reserve Bank of India (RBI) said in its latest Financial Stability Report (FSR).
Despite an uncertain and challenging global economic backdrop, the RBI said the domestic financial system remains robust and resilient, backed by strong balance sheets, easy financial conditions, and low market volatility.
The central bank highlighted that while the global economy has shown resilience aided by fiscal measures and strong investment trends, downside risks persist due to ongoing uncertainties, elevated public debt, and possible market disruptions.
The RBI also noted that broader financial markets, though appearing strong, display underlying vulnerabilities, including rapid equity rises and expanding non-bank financial linkages, which could pose challenges if investor sentiment shifts. Overall, the report underscores that India’s growth trajectory remains solid, driven by internal demand and stable prices, even as external risks continue to loom.
