Reserve Bank Governor Shaktikanta Das on Thursday said India is one of the fastest-growing major economies in the world with a rising potential growth profile. He also emphasised that the central bank remains committed to act early and decisively to prevent any build-up of risks.
In his foreword to the RBI's 28th issue of the Financial Stability Report (FSR), Das said attaining long-term price stability, guaranteeing the sustainability of debt over the medium term, enhancing the financial sector's resilience, generating new development prospects, and encouraging inclusive and environmentally friendly growth continue to be top policy priorities.
'Indian economy shows macroeconomic resilience'
The FSR reflects the collective assessment of the Sub-Committee of the Financial Stability and Development Council (FSDC) on risks to financial stability and the resilience of the Indian financial system, he said. Das noted that although the world economy is dealing with a number of difficulties, the Indian economy is macroeconomically resilient and has a strong banking system that is sustaining its growth patterns.
"We remain alert and committed to act early and decisively to prevent any build-up of risks," he said.
Macroprudential measures taken by RBI
He also said that recent macroprudential measures taken by the central bank to curb lenders’ exuberance towards certain segments of retail loans underline its commitment to preserving financial stability without compromising the availability of funds for productive requirements of the economy.
"India is one of the fastest growing major economies in the world with a rising potential growth profile," the governor said, and added the sharp rebound in growth is underpinned by sound macroeconomic fundamentals, robust domestic demand and prudent public policies.
RBI Governor on tackling technological disruptions
Even as India confronts global headwinds and emerging challenges from technological disruptions, cyber risks and climate change, he said RBI's endeavour will be to continue to fortify the financial system, promote responsible innovation and invigorate inclusive growth. The Reserve Bank and the other financial regulators remain invested in preserving financial stability and fostering a financial system that is resilient to shocks and supportive of growth, RBI Governor added.
(With inputs from PTI)
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