India in better position than other countries to deal with stagflation: RBI

Despite the challenging conditions at the global level, India is in a better position than other countries to deal with the possible situation of stagflation. These things have been said in an article published in the June Bulletin of the Reserve Bank of India (RBI). Let us tell you that stagflation is called a situation when the rate of inflation and unemployment in the country is very high, while demand remains constant. It is also called a recession caused by inflation. On behalf of RBI Deputy Governor Michael Debvrat Patra, it has been said in this article that the condition of the global economy is deteriorating continuously. The rise in commodity prices and volatility in financial markets has added to the uncertainty. The article states, "India is in a better position than other countries to deal with the possible situation of stagflation amidst adverse conditions at the global level."

The article said that most of the factors included in GDP (Gross Domestic Product) have crossed the pre-pandemic level, thereby strengthening domestic economic activity. The inflation data for May has also given some relief. It has registered a decline after seven consecutive months of rapid growth. Also read- Share Market: The stock market bled due to the sell-off, investors lost Rs 16 lakh crore in the last 5 days, RBI, however, said that the things said in the article are the views of the authors and do not necessarily represent the thinking of RBI Do you. According to the article, the country’s GDP growth rate was 8.7 percent in the financial year 2022. With this it has crossed the pre-pandemic level (FY 2020). Not only this, so far the recovery in FY 2023 remains strong. RBI Bulletin reads, "Overall the economic recovery is on track. This shows the strength of the Indian economy in the current challenging situation."

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