Mumbai, March 17 (FN Agency) Even as the ongoing geopolitical crisis has heightened uncertainty, clouding the global macroeconomic and financial landscape, India’s macroeconomic fundamentals remain strong, according to a Reserve Bank of India(RBI) article on the state of the economy. The article published in the RBI Bulletin March 2022 noted that the world economy is still struggling to recover from the pandemic. “As the (Russia-Ukraine) conflict escalates, oil and other commodity prices are blazing to multi-year highs, and financial markets are on edge, driven by massive sell-offs,” it said. Also, the spiraling oil and gas prices and unsettled financial market conditions pose fresh headwinds to the still incomplete global recovery, the article said.
“Amidst these testing times, India is making steady progress on the domestic front as it recovers from the third wave. India’s macroeconomic fundamentals remain strong,” it said. The article mentioned that the Indian economy is experiencing spillovers as it recovers from the third wave of the pandemic. “Consumer and business confidence are rising alongside improvement in demand conditions. On the supply side, a resilient farm sector and a sustained retrieval in both industrial and services sectors are broadening the recovery,” it said. The article, however, noted that the unfolding global developments, nevertheless, pose downside risks in terms of spillover.