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Investing.com -- The Reserve Bank of India (NSE:BOI) (RBI) stated in its April bulletin released on Tuesday that India’s economy is less susceptible to global economic challenges. It suggested that with proper policy support, the country could leverage the current volatility as an opportunity.
The RBI noted that while the global economic slowdown might affect India’s economic growth due to weaker external demand, the country’s primary growth drivers - consumption and investment - are less vulnerable to these global pressures. This was stated in the RBI’s article titled "State of the Economy."
The central bank also warned that fluctuating global financial conditions could put emerging markets in jeopardy due to potential ripple effects and spark another wave of inflation worldwide.
However, the RBI also expressed optimism about India’s future economic prospects. The bank stated that India is well-positioned to benefit from shifts in supply chains, diversified foreign direct investment (FDI) sources, and interactions with global investors looking for resilience and scale. This is due to India’s already established trade ties.
The RBI also highlighted the crucial role of India’s robust services exports and remittance inflows. These factors continue to provide a vital buffer for the country’s current account, reinforcing its economic stability.
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