India’s economy has shown resilience amid fears of a global recession and war, the RBI (Reserve Bank of India) said on Saturday. Counting the revival of the monsoon, pick-up in production and services, and stabilization of inflation problems among other factors that have contributed, the central bank emphasized the bright appearance and conditions of continuous growth in the medium term.
Strong buffers in the form of adequate international reserves, adequate food grains and a stable fiscal policy have also supported India’s economy, the RBI emphasized in its July statement.
With the war in Ukraine about to enter its sixth month, and the coronavirus spreading in other parts of the world, several countries have been struggling with rising prices of essential goods.
In the United States, as the figures for June were revealed this week, which raises new concerns, the president of the United States Joe Biden in his speech emphasized that: “Although the issue of inflation today is very high, it is also old. Energy alone accounted for nearly half of the monthly increase in inflation.”
At 9.1 percent, US inflation was at a 40-year high in June.
Currently, due to the current international situation, the role of the monetary policy in terms of inflation has been monitored, the central bank said in the July bulletin. “The role of factors in the development of food inflation and commodity price inflation is well known. Timely and reliable indicators of crop yields are important in assessing the future price trends,” it said.
The remittances to India have confirmed that they are “recipients of current accounts during the pandemic”, it said. “Remittances from other countries are driven by commitment, which is affected by the number of diseases going to the country of destination and the closure of the countries of origin. The fifth part of the remittance survey for 2020-2021 has found that the share of the Gulf countries in the remittances from The Gulf has declined, which reflects the slow migration and presence of the Indian diaspora in the informal sector that was hit hard during the pandemic,” he said. .
Earlier this week, government data revealed that India’s inflation eased slightly to 7.1 percent in June, compared to 7.04 percent in the previous month.
Meanwhile, the annual inflation rate based on the India Wholesale Price Index (WPI) stood at 15.18 percent in June – the slowest increase in three months.
In the month of May, this number rose to a thirteen-year high of 15.88 percent (year-on-year).