Unfolding Global Developments Poses Risks To Indian Economy: RBI
NDTV
India's macroeconomic fundamentals remain strong but the unfolding global developments pose downside risks in terms of spillover, the Reserve Bank of India said in its monthly bulletin on Thursday.
India's macroeconomic fundamentals remain strong but the unfolding global developments pose downside risks in terms of spillover, the Reserve Bank of India said in its monthly bulletin on Thursday.
"The ongoing geopolitical crisis has heightened the uncertainty clouding the global macroeconomic and financial landscape even as the world economy struggles to recover from the pandemic," the RBI wrote, adding that the uncertain economic outlook has increased risks to emerging economies.
Even though India is making steady progress on the domestic front, the spiralling oil and gas prices and unsettled financial market conditions also pose fresh headwinds to the still incomplete global recovery, it observed.
The RBI also said that a rapid and large withdrawal of fiscal support risks pushing the economy over the cliff into a sharp downturn.
