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Reserve Bank of India (RBI) Governor Shaktikanta Das has said that India is poised to become the new growth engine of the world as the central bank retained the country's GDP growth forecast at 6.5 per cent for 2023-24, notwithstanding the slowing global economy. He said macroeconomic stability and inclusive growth are the fundamental principles underlying a country's progress. He also said ‘the policy mix that we have pursued during the recent years of multiple and unparalleled shocks has fostered macroeconomic and financial stability.’ He added that the external sector also remains eminently manageable.

Das further said the twin balance sheet stress that was encountered a decade ago has now been replaced by a twin balance sheet advantage with healthier balance sheets of both banks and the corporate. He observed that the global economy is slowing under the impact of tight financial conditions, protracted geopolitical tensions and increasing geo-economic fragmentation. He said global trade is contracting, headline inflation is easing but rules above the target in major economies.

The governor further said in contrast to global trends, domestic economic activity exhibits resilience on the back of strong domestic demand. Domestic demand conditions are expected to benefit from sustained buoyancy in services, revival in rural demand, consumer and business optimism, the government’s thrust on capex, and healthy balance sheets of banks and corporates. He added that headwinds from global factors like geopolitical tensions, volatile financial markets and energy prices, and climate shocks pose risks to the growth outlook.