Indian economy remains a key driver of global growth amidst global challenges: RBI report

New Delhi [India], June 30 (ANI): Despite an uncertain and challenging global economic backdrop, the Indian economy remains a key driver of global growth -- underpinned by sound macroeconomic fundamentals and prudent macroeconomic policies, RBI said in its latest Financial Stability Report.
Elevated economic and trade policy uncertainties are testing the resilience of the global economy and the financial system.
"Financial markets remain volatile, especially core government bond markets, driven by shifting policy and geopolitical environment. Alongside, existing vulnerabilities such as soaring public debt levels and elevated asset valuations have the potential to amplify fresh shocks," the highlights of the RBI report read.
The domestic financial system, according to the RBI, is exhibiting resilience fortified by healthy balance sheets of banks and non-banks.
Financial conditions have eased, supported by accommodative monetary policy and low volatility in financial markets.
The strength of the corporate balance sheets also lends support to overall macroeconomic stability, the RBI noted.
"The soundness and resilience of scheduled commercial banks (SCBs) are bolstered by robust capital buffers, multi-decadal low non-performing loans ratio and strong earnings," RBI said in its report.
In the banking sector, results of macro stress tests affirm that most SCBs have adequate capital buffers relative to the regulatory minimum even under adverse stress scenarios.
"Stress tests also validate the resilience of mutual funds and clearing corporations," it supplemented.
Non-banking financial companies (NBFCs) remain healthy with sizable capital buffers, robust earnings and improving asset quality.
As was widely expected, the Indian economy grew by 6.5 per cent in real terms in the recently concluded financial year 2024-25, official data showed recently.
The Reserve Bank of India had projected 6.5 per cent GDP growth for the fiscal year 2024-25.
In 2023-24, India's GDP grew by an impressive 9.2 per cent, continuing to be the fastest-growing major economy.
According to official data, the economy grew 8.7 per cent and 7.2 percent, respectively, in 2021-22 and 2022-23.
To realise the vision of 'Viksit Bharat', a developed nation dream by 2047, India will need to achieve a growth rate of around 8 per cent at constant prices, on average, for about a decade or two, the Economic Survey document for 2024-25 tabled on January 31 asserted. (ANI)