The Reserve Bank of India (RBI) seal is pictured on a gate outside the RBI headquarters in Mumbai, India, February 2, 2016. REUTERS/Danish Siddiqui
Reuters - July 16, 2022

India's economy has remained resilient in the face of global headwinds and with inflation coming off its recent peak is expected to stay on course to become the world's fastest-growing economy, the Reserve Bank of India said on Saturday.

The recent revival of the southwest monsoon and renewed planting raised expectations that rural demand will soon catch up with urban spending and consolidate a recovery, the RBI said in a bulletin.

"Knock-on effects of geopolitical spillovers are visible in several sectors, tapering the pace of recovery," the central bank said.

"In spite of this overwhelming shock, there are sparks in the wind that ignite the innate strength of the economy and set it on course to becoming the fastest growing economy in the world, though besieged it might be by fears of recession."

It did not give a time frame.

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