Recovery still fragile: RBI

India’s recovery from the global financial crisis is “still fragile”, according to Reserve Bank of India (RBI) Governor D Subbarao.

Pointing out that the kharif output was estimated to decline by 18 per cent and exports had gone down for 12 months in a row, Subbarao said inflationary pressure was building up.

Further, the deceleration in non-food credit (- 4.4 per cent) indicated the weak nature of the recovery, he said.

He, however, hoped the recovery to be “swift and sharp” once the global recovery became more deep-rooted as the country’s growth fundamentals remained intact.

Making a presentation on ‘India and the Global Financial Crisis: Collateral Damage and Response’ at the Indian School of Business here on Friday, the RBI governor said it was necessary on the part of the government to return to fiscal consolidation and support growth drivers such as private investment and consumption.