India’s resilience has undergone marked improvement1 min read 07 Jun 2023, 11:34 PM IST
India has managed to remain stable amid global shocks, with the rupee stabilising, equity and debt markets avoiding sharp deterioration, and bank credit sustaining at decadal highs. Falling crude oil prices have helped reduce the current account deficit, along with rising services exports and increased remittances from Indian workers overseas. The Reserve Bank of India's interventions in the foreign exchange market have helped curb rupee depreciation, while the central bank's foreign exchange reserves remain adequate to cover major exigencies. FDI has become the dominant form of capital inflows, and India's growth premium over advanced economies is high and expected to improve further.
The past year or so has seen large global shocks—Russia-Ukraine war, aggressive rate hikes by major central banks, and the recent banking turmoil in US, to name a few. India, however, has largely held its ground. The rupee has stabilised over the past few months, equity and debt markets have avoided any sharp deterioration, and bank credit has sustained at decadal highs.