India’s central bank sees the ongoing geopolitical crisis as a downside risk to the Indian economy.
The crisis has added to the uncertainty that is clouding the global macroeconomic and financial landscape even as the global economy struggles to recover from the pandemic, the Reserve Bank of India said in its March 2022 monthly bulletin published Thursday.
As the conflict escalates, oil and other commodity prices are soaring to multi-year highs and financial markets are on edge, driven by massive sell-offs, it said.
In these difficult times, India is making steady progress on the domestic front as it recovers from the third wave. Macroeconomic fundamentals remain strong, the bulletin said. Consumer and business confidence is rising, along with an improvement in demand. On the supply side, a resilient agricultural sector and an ongoing upswing in both industrial and service sectors are bolstering the recovery.
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