The country's growth story is backed by its strong domestic fundamentals, said Shaktikanta Das.New Delhi:The head of Reserve Bank of India (RBI) said on Friday he would take steps necessary to maintain financial stability in country and help create favourable conditions for growth.
The country's economy has grown because of measures such as nationwide goods and services tax and insolvency and bankruptcy code that prevents wilful defaulters from bidding for stressed assets, Shaktikanta Das said in his address to an investor roundtable.The country's growth story is backed by its strong domestic fundamentals, he said, citing lower inflation.Annual retail inflation rate dropped to an 18-month low of 2.19 per cent in December, strengthening views of some economists that central bank could ease monetary policy next month.The country's top business groups on Thursday urged central bank to cut its benchmark interest rate by at least half a percentage point and lower cash reserve ratio it imposes on banks.The country also needs to watch out for any sudden turbulence in global financial market, Mr Das said.