RBI says that Indian economy is not at risk of recession but will have to bear some losses due to global factors

RBI Governor Shaktikanta Das on Wednesday said that fundamental economic activities in India remain strong, but global factors will cause some 'damage' to the economy. Das told a summit organized by an English daily that the RBI monitors 70 fast moving indicators and most of them are in "good shape". He said these are external factors, driven by fear of recession in a large part of the world where there are challenges.

He added that the impact of external demand would "spin" the economy. The central bank earlier this month cut its growth forecast for the next fiscal year 2023-24 to 6.8 per cent from 7 per cent earlier. Das said the Indian financial sector remains resilient and is in a much better shape. He said that the credit goes to both the regulator and the financial sector companies for this achievement. Das said monetary policy will continue to be guided by domestic factors on inflation and growth. Apart from this, it also takes into account other inputs like the action of the US Federal Bank.

On inflation, Das said there has been a "very coordinated effort" between the government and the central bank to control inflation. The RBI governor said that there is no significant difference in absolute terms between deposit and credit growth, with the base effect showing the growth figures for the two separately. He said credit growth in absolute numbers stood at Rs 19 lakh crore till December 2, 2022, while deposit growth stood at Rs 17.5 lakh crore.