RBI Governor Highlights Key Economic Strategies Amid Global Challenges

RBI Governor Shaktikanta Das emphasized the importance of fiscal-monetary coordination in managing economic shocks. At a key conference, he detailed measures that ensured India's macroeconomic stability, citing major reforms like GST and IBC. Effective supply management was crucial in tempering inflation while supporting growth.

In a compelling address at the High-Level Policy Conference for Central Banks in the Global South, Reserve Bank of India Governor Shaktikanta Das underscored the indispensable role of fiscal-monetary coordination in steering India through a series of economic disruptions. Held in Mumbai, the conference provided a platform for Das to detail the strategic measures implemented by the RBI that have safeguarded macroeconomic stability in the face of global challenges.

Das stressed that India's resilience in overcoming a myriad of adverse shocks was primarily driven by effective fiscal-monetary coordination. He noted, "Effective fiscal-monetary coordination was at the core of India's success," pointing out that this partnership is a shared responsibility between monetary and fiscal authorities. He praised government initiatives that managed demand-pull pressures, alleviating supply chain disruptions and moderating inflation, which were instrumental in maintaining price stability while fostering growth.

Reflecting on key structural reforms such as the Flexible Inflation Targeting Framework, the Goods and Services Tax (GST), and the Insolvency and Bankruptcy Code (IBC), Das emphasized their transformative impact on India's economic landscape. "Implementation of the nationwide Goods and Services Tax, and enactment of the Insolvency and Bankruptcy Code, brought about a paradigm shift in the Indian economy," Das stated, noting these reforms have significantly boosted India's medium- and long-term growth potential. Additionally, he outlined the RBI's adaptive policy responses to recent challenges, noting strategic shifts like preemptive rate hikes that balanced inflation and growth priorities.

(With inputs from agencies.)