New Delhi, 30 June (IANS). Even after unstable and challenging global conditions, the Indian economy is playing an important role in furthering the global growth rate. The reason for this is the strong base and policy support of the economy. This statement was made by the Reserve Bank of India on Monday.
The Reserve Bank said in the June 2025 issue of its ‘Financial Stability Report (FSR)’ that the growing economic and trade policy uncertainty is taking the strengthening of the global economy and financial system.
The report further stated, “Financial markets remain unstable, especially the core government bond markets, which are affected by the changing policy and geopolitical environment. Also, the existing weaknesses such as the increasing level of public debt and high asset evaluation have the ability to increase new shocks.”
The central bank further stated that the domestic financial system remains strong by the healthy balance sheet of banks and non-banking companies.
According to the report, financial conditions have become easier due to low instability in financial markets and generous monetary policy. The strength of the corporate balance sheet is also supporting the overall comprehensive economic stability.
The RBI report said, “Scheduled Commercial Banks (SCBs) strengthened and strong capital buffer, the lowest NPA ratio and strong income have been possible in many decades.”
According to the central bank, the results of the macro stress test confirm that most SCBs have sufficient capital buffer than regulatory minimums even under adverse stress landscapes. Stress tests also recognize the strength of mutual funds and clearing corporations.
Non-banking financial companies (NBFCs) remain healthy with large capital buffer, strong income and better asset quality. The consolidated solvency ratio of the insurance sector also remains above the minimum limit.
According to an RBI estimate, India’s economy may grow at a rate of 6.5 percent in FY 2025-26.
-IANS
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