RBI Deputy Governor Highlights India’s Economic Resilience Amid Geopolitical Uncertainty
India’s economy has shown resilience amid geopolitical tensions, supply-chain disruptions, and fluctuating commodity prices, according to Reserve Bank of India Deputy Governor Swaminathan J. In a speech at Columbia University’s School of International and Public Affairs, he noted that strong industrial and services activity, broad-based demand, and improving corporate performance have supported this stability. He also stated that inflation remains within the Reserve Bank’s tolerance band and that external vulnerabilities are manageable.
Economy showing resilience
Swaminathan highlighted that India’s macroeconomic position continues to be robust despite global uncertainties. He pointed out that domestic economic activity has remained strong, bolstered by industrial and services sectors, as well as improving corporate performance. The Deputy Governor emphasized that India is currently on a solid macroeconomic footing, with inflation contained within acceptable limits and external vulnerabilities under control.
Stronger banking system
The Deputy Governor remarked that the Indian financial system is entering this phase of global uncertainty from a position of strength. He noted that the banking sector has healthier balance sheets, comfortable capital buffers, improved profitability, and non-performing assets at multi-decade lows. Swaminathan stressed the critical role of a resilient banking system, stating that its absence can quickly transmit stress across the economy, affecting firms, households, and public finances.
Resilience is a continuous process
Swaminathan emphasized that banking resilience should be seen as an ongoing institutional effort rather than a one-time achievement. He explained that resilience is built through disciplined practices across balance sheets, transparent recognition of stress, and adaptive regulation. Strong banks require not only capital and technology but also sound judgment, governance, and accountability. He concluded that India’s recent experiences illustrate that resilience is most effective when regulation, supervision, and prudent banking practices work in concert.
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