India far better placed to deal with geopolitical challenges, says cenbank chief

By Una Galani

DAVOS, Switzerland, Jan 18 (Reuters) – Slowing global growth is reason for concern, a cause of worry but India is better placed to deal with various geopolitical challenges, Reserve Bank of India Governor Shaktikanta Das said at the World Economic Forum in Davos on Thursday.

“Geopolitical flashpoints are continuing, new flashpoints are coming out. Supply chain bottlenecks have not fully normalised. Inflation has been brought under control but individual countries have not reached their targets. The last mile is proving to be very difficult,” Das said.

“So far as India is concerned, in this kind of an environment India, as an economy, has emerged from the recent crisis much stronger.”

The country’s monetary policy must remain actively disinflationary despite the recent sharp fall in core inflation, Das told Reuters in an interview on Wednesday.

The central bank chief said the government has been mindful of staying on the fiscal consolidation path and expects that to continue along with maintaining the momentum on structural reforms.

Das reiterated the economy remains robust, with stability both on the macro-economic front and the financial sector.

The governor has engaged in multiple public speaking engagements over the last three days at the WEF.

(Writing by Swati Bhat in MUMBAI; Editing by Savio D’Souza)