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Reserve Bank of India’s (RBI's) Monetary Policy Committee (MPC) member Ashima Goyal has said that the Indian economy has done well despite multiple external shocks, but counter-cyclical macroeconomic policy measures will be required to aid the economy's natural resilience as geopolitical situation remains fragile. Goyal further said inflation in the country has come down but it has not yet reached the target levels.

She said ‘Major contributing factors for good performance were India's rising economic diversity and the role of policy in smoothing shocks. Both these helped India do well despite multiple external shocks.’

The Reserve Bank has projected GDP growth for the next financial year at 7 per cent on the back of improved household consumption and upturn in the private capex cycle. Besides, Noting that the government has over-achieved its fiscal deficit target despite nominal income growth being less than what projected in the budget (since wholesale prices fell), she said higher growth and tax buoyancy gives room to reduce deficit and debt ratios while adequately raising absolute amounts of spending.