The Reserve Bank of India (RBI) is optimistic that the Indian economy is resilient and is on target to become the fastest growing economy in the world despite concerns that global economies could enter a recession.
According to the note, amid weak global cues and high-risk aversion in financial markets that are driving away portfolio investors, the Indian economy has been demonstrating signs of resilience and dynamism. According to the RBI, the US dollar’s unwavering strength is bringing down all currencies.
According to the note, the Indian economy has been showing signs of resilience and dynamism despite weak global cues and high-risk aversion in financial markets that is stampeding portfolio investors. It is taking down all currencies against the unrelenting strength of the US dollar, RBI stated.
On the strength of the southwest monsoon’s recovery and a rebound in sowing activities, the agriculture sector has shown encouraging signals, bolstering hopes that rural demand will soon catch up with urban spending and solidify the recovery, it added. This respite has been clubbed with domestic inflation easing its recent peak.
Agriculture sector has seeing good signs on the back of revival of the southwest monsoon and rejuvenation of sowing activity, raising expectations that rural demand will soon catch up with urban spending and consolidate the recovery, it added. Retail inflation decreased slightly in June to 7.01%, according to preliminary statistics provided by the National Statistical Office (NSO) on July 12.
