Mumbai, India's economy has shown resilient growth over the past decade, supported by robust policy frameworks, financial stability, and sound fiscal policies, Reserve Bank of India Governor Sanjay Malhotra said.
He noted that in response to the ongoing crisis, India is increasing its domestic production of oil and gas, with some rationing of gas for industrial purposes.
Malhotra emphasized that while oil marketing companies and the government have absorbed some of the price pressures in oil, a portion of the pressures on gas prices has been passed on to consumers.
India has achieved an average growth rate of 6.1 per cent annually over the last decade, compared to the global economy's growth rate of 3.2 per cent.
The RBI governor highlighted that the resilience of the Indian economy results from the robust policy frameworks and strong, credible institutions developed over time.
Malhotra emphasized that the appropriate monetary policy response to such a supply shock is to look beyond the first-round effects, provided they do not lead to longer-term second-round dynamics.
He added that in uncertain times such as this, it is important to be agile and nimble, maintaining a broad policy stance and avoiding making firm commitments to the future path of policy.
