RBI Governor Calls For International Cooperation To Achieve Environmental And Economic Equality And Stability
He reiterated the importance of factoring in the potential financial stability implications of the green transition and chalking out an effective global cooperation and coordination strategy to deal with the multiple challenges afflicting the global economy
RBI Governor Shaktikanta Das emphasised the unequal distribution of green capital globally, highlighting its disproportionate concentration in advanced economies while underscoring the urgent need to enhance capital flows to emerging market economies (EMEs). Addressing the Global 59th SEACEN Governors’ Conference in Mumbai, he stressed the necessity of collaborative efforts to combat climate change, emphasizing that individual countries’ strategies are insufficient. Das reiterated the importance of considering the financial stability implications of the green transition and advocated for a robust global cooperation strategy to address various challenges facing the global economy, emphasizing the need to revitalize multilateralism.
He underscored the RBI’s vigilance in managing the final phase of disinflation, acknowledging it as the most demanding segment of the journey. Maintaining stable and low inflation, Das asserted, is crucial for laying a solid foundation for sustainable economic growth. Despite moderation in inflation from the highs of summer 2022, recurring food price shocks and geopolitical tensions continue to pose challenges to the ongoing disinflation process. In January, the consumer price index (CPI)-based inflation rate dropped to a three-month low of 5.1 percent, compared to 5.69 percent in December.
Das emphasized the imperative of infrastructure improvement for long-term growth, highlighting the significance of investing in both physical infrastructure such as roads, ports, airports, electricity, and water, as well as soft infrastructure including education, healthcare, and legal, financial, and institutional frameworks. He stressed the importance of skill development and increasing female labor force participation to enhance efficiency and unlock growth potential in any region.
