Global headwinds represent a threat, with inflation risks heightened: RBI

Risks posed by global events have thwarted recovery momentum, according to the Reserve Bank of India . The Indian economy is still robust, according to the Reserve Bank of India .

Risks posed by global events have thwarted recovery momentum, according to the Reserve Bank of India (RBI), and they have become more apparent in recent months.The Indian economy is still robust.According to the RBI's State of the Economy survey, the increase of international commodity prices has resulted in a net term of trade shock, increasing inflation, supply disruptions due to geopolitical spillovers, and financial market volatility as a result of synchronized monetary tightening.On account of an increase across all major sectors, headline CPI inflation (year-on-year) increased to 7.8 percent in April from 7.8 percent in March.India faces challenges in resurviving the pandemic scars by making more investment in health and productivity of the workforce, it said.

The global growth outlook seems grim as geopolitical tensions persist, commodity prices rise, and withdrawal of financial assistance accelerates.Capital outflows and higher commodity prices are a concern for emerging economies, which result in higher inflation rates.According to the report, the pandemic is continuing to have a negative effect on near-term economic prospects.Private investment must be stimulated by higher capital expenditure by the government, which crowds in private investment in order to achieve a stronger growth trajectory on a sustainable basis.

The Indian economy accelerated its recovery, with the majority of the constituents exceeding pre-pandemic levels of activity.According to the report, the global economic outlook is overcast with downside risks as a result of the continuing geopolitical upheaval and its effect on commodity, output, and prices.Mumbai: The Reserve Bank of India (RBI) has rejected six out of 11 proposals submitted by the central bank to set up a bank under the guidelines for on tap licensing of universal banks and small finance banks.According to the RBI, six applicants were deemed ineligible for in-principle approval to open banks, according to the RBI.The applicants who were not selected eligible for on tap licensing of small finance banks include UAE Exchange and Financial Services Ltd, Repatriates Cooperative Finance and Development Bank Limited (REPCO Bank), Chaitanya India Fin Credit Private Ltd, and Pankaj Vaish.