RBI: Growth may be affected by the strong engine of the consumption-investment economy, weak foreign demand

New Delhi| Domestic engines of growth such as consumption and investment remain strong amid global uncertainties. These are relatively less affected by external adverse conditions. However, India’s economic growth rate may be affected due to weakening demand from abroad as the global economic outlook weakens.

Conscious policy support can help India convert global instability into opportunity and strengthen its position in the emerging scenario, the RBI said in its April bulletin issued on Tuesday. However, trade tensions and financial market volatility have raised concerns about the weakening of global growth in the near future.

There may be an increase in agricultural income
The bulletin further said that the forecast of better than normal monsoon this year has boosted the prospects of the agriculture sector. This can increase agricultural income and help keep food prices under control. According to the bulletin, given India’s trade relations with various countries, it is willing to diversify sources of foreign direct investment by streamlining supply chains and benefiting from engagement with global investors.