The Indian economy continues to grow at a strong pace, supported by robust domestic demand, moderate inflation, and prudent macroeconomic policies despite global headwinds.
This was stated by the Reserve Bank of India in its latest Financial Stability Report.
The report highlighted that the domestic financial system remains resilient, backed by strong balance sheets, accommodative financial conditions, and low volatility in financial markets.
However, it cautioned that near-term risks persist due to external uncertainties, including geopolitical developments and trade-related challenges.
The report stated that the global economy has shown resilience, aided by fiscal support and strong investment in artificial intelligence.
At the same time, it warned of downside risks stemming from elevated uncertainty, rising public debt levels, and the possibility of a disorderly correction in global financial markets.
