India's Recovery from Recession "Fragile", but Economic Fundamental "Strong" - RBI Governor
Reserve Bank of India Governor D. Subbarao has shared that while the country's recovery from the global recession can still be categorized as "fragile", its economic fundamentals are definitely strong.
For about 12 consecutive months now, India's rate of export has been recorded as falling, when compared year-on-year, and the inflationary pressure is rapidly building up. Also, there has been "deceleration in non-food credit in the current financial year", making the recovery fragile and vulnerable. The points were shared by the Governor during a presentation at the Indian Business School on 'India and the Global Financial Crisis: Collateral Damage and Response’.
All reported fact, however, were not bleak, as Mr. Subbarao stressed that once the recovery starts on a global level, India's improvement would be "swift and sharp". During the financial fall, India was less hurt than others solely on the back of the rural sector and its National Rural Employment Guarantee Program, in addition to the farm debt waiver.
Governor Subbarao concluded by saying that the biggest challenges before India right now are to ensure "monetary and fiscal stimuli work, returning to fiscal consolidation, supporting drivers of growth and managing policy in a globalizing world".