India needs to monitor Iran war impact, RBI report says
- Financial conditions, crude oil prices and capital flows continue to pose challenges to external sector outlook
MUMBAI: India’s economic outlook is clouded by supply-side pressures, the central bank said in its monthly economic report on Friday, flagging a need to closely monitor how the Iran war-led energy shock feeds through to prices.
High-frequency economic indicators in April suggest sustained demand, with domestic demand continuing to be a key growth-driver.
However, challenges remain in a few sectors.
Near-term outlook somewhat clouded by supply-side pressures.
Headline inflation remains firmly within tolerance band, but pass-through to domestic prices needs to be monitored.
Indian stocks muted as Iran war worries offset IT gains
Financial conditions, crude oil prices and capital flows continue to pose challenges to external sector outlook.
FX reserve buffers as well as the number of proactive policy measures undertaken by the government and the Reserve Bank of India are likely to cushion the Indian economy against external headwinds.
Comments