Food and energy supplies and prices are under strain, debt distress is staring at many emerging markets and developing economies, and every economy is grappling with multiple challenges, he said.
“Amidst such global shocks and challenges, the Indian economy presents a picture of resilience. Financial stability has been maintained. Domestic financial markets have remained stable and fully functional. The banking system is sound and well-capitalised,” Das said.
In spite of formidable global headwinds, he said that India’s external accounts remain well-cushioned and viable.
Going forward, Das said that core issues of management of climate change, dealing with unanticipated and fresh shocks, if any, further strengthening the buffers of financial system, harnessing fintech innovations and deepening financial inclusion will continue to receive priority attention from regulators and policy makers .
In 2023, India is well positioned to play a leading role on the world stage as part of its G20 presidency. The biggest challenge for G20 as a group is to re-ignite the effectiveness of multilateralism, the Governor said.
Further, Das said the central bank recognizes the destabilizing potential of global risks even as it draws strength from the robust macroeconomic fundamentals of the Indian economy.
“The Reserve Bank and the other financial regulators remain vigilant and in readiness to ensure the stability and soundness of our financial system through appropriate interventions, whenever necessary, in the best interest of the Indian economy,” he said.