Risks loom, but India has buffers, says RBI report

Escalation in geopolitical and trade tensions were cited as key risks

- Shayan Ghosh & Subhana Shaikh

RBI governor Sanjay Malhotra.

The Reserve Bank of India (RBI is aware of near-term risks to the Indian economy from external spillovers and will continue building strong guardrails to act as a buffer against global shocks, governor Sanjay Malhotra said.

“The Indian economy and the financial system, in contrast, remain robust and resilient supported by strong growth, benign inflation, healthy balance sheets of financial and non-financial firms, sizeable buffers and prudent policy reforms,” Malhotra said in the foreword to the central bank’s half-yearly financial stability report.