Global developments pose downside risks to India, says RBI report

The report said the shock emanating from geopolitical risks hit at a time when inflation was elevated in many countries

The ongoing geopolitical crisis, which resulted in oil and other commodities to surge to multi-year highs, has heightened the uncertainty clouding the global macroeconomic and financial landscape, posing downside risks to the Indian economy, the Reserve Bank of India said in its monthly state of the economy report on Thursday. The economy is experiencing "spillovers" as it recovers from the third wave of the Covid-19 pandemic, the report added.

“India’s macroeconomic fundamentals remain strong. Unfolding global developments nevertheless pose downside risks in terms of spillovers,” it said.

Crude oil prices surged past $100 a barrel for the first time since 2014 after