RBI: Consumption-investment is a strong engine of the economy, growth may be affected by weak foreign demand
RBI: In the April bulletin released on Tuesday, the RBI said, prudent policy support can help India turn global instability into an opportunity and strengthen its position in the emerging scenario. However, trade tensions and volatility in the financial market have raised concerns about a weakening of global growth in the near future.
In the midst of worldwide uncertainties, indigenous drivers like consumption and investment are robust. Domestic consumption and investment are comparatively less impacted by foreign negative conditions. India's growth rate can be impacted by the deceleration in demand abroad and the deceleration in the overall economic situation worldwide.
In the April bulletin released on Tuesday, the RBI said, prudent policy support can help India turn global instability into an opportunity and strengthen its position in the emerging scenario. However, trade tensions and volatility in the financial market have raised concerns about a weakening of global growth in the near future.
The bulletin further said that the forecast of a better-than-normal monsoon this year has boosted the prospects of the agriculture sector. This can increase agricultural income and help in controlling food prices. According to the bulletin, given India's trade relations with various countries, it is set to benefit from diversifying sources of foreign direct investment and connecting with global investors by streamlining the supply chain.
