New Delhi, Aug 5: India’s strong economic fundamentals and improved Current Account Deficit (CAD) position will help the country withstand external challenges, RBI Governor Sanjay Malhotra said, highlighting the resilience of the Indian economy amid global uncertainties.
The Governor said a stable external sector, healthy domestic demand, and improving economic indicators have strengthened India’s ability to manage global headwinds, including fluctuations in commodity prices, geopolitical developments, and changes in international markets.
The RBI has maintained that India’s external position has improved over recent years, supported by strong services exports, steady foreign exchange reserves, and a balanced approach towards managing external risks.
A better current account position reduces pressure on the economy during periods of global volatility and provides greater stability for businesses, investors, and financial markets.
The Governor said India’s growth momentum continues to be supported by resilient domestic consumption, investment activity, manufacturing expansion, and strong performance in the services sector.
Experts believe that a stronger external position, combined with sound monetary and fiscal management, will help India maintain economic stability while navigating uncertainties in the global economy.
With continued focus on growth, reforms, and financial stability, India is expected to remain better prepared to handle external challenges and sustain long-term economic expansion.
