The Economic Times daily newspaper is available online now.

    Global supply chain disruptions, input cost pressures to linger: RBI's Shaktikanta Das

    Synopsis

    Elaborating further, he said that this could be worsened by the resurgence of Covid-19 infections in some major economies that has been witnessed since March.

    rbi-guv
    Das also said that the Russia-Ukraine war could potentially impede the economic recovery through elevated commodity prices and global spillover challenges .
    Taking a view of the supply chain disruptions that have shaken up the global economy, Shaktikanta Das, Governor, Reserve Bank of India during its bi-monthly monetary policy review held on April 8, said that this is expected to continue in the time ahead.

    “Global supply chain disruptions and input cost pressures are expected to linger even longer. Concerns over protracted supply chain disruptions have rattled commodities and financial markets,” the Governor stated during RBI's bi-monthly monetary policy review held on Friday.

    Elaborating further, he said that this could be worsened by the resurgence of Covid-19 infections in some major economies that has been witnessed since March. “The associated lockdowns run the risk of further aggravating the risk of global supply chain bottlenecks and input cost pressures,” he said.

    This, he said, would possibly weaken world trade and output as well as external demand than what was envisaged two months back.

    Das also said that the Russia-Ukraine war could potentially impede the economic recovery through elevated commodity prices and global spillover challenges .

    Observing how new and humongous challenges have come up, Das added that shortages in key commodities, fractures in international financial architecture and fears of deglobalization, extreme volatility characterising commodity and financial markets are some key issues that need to be confronted.

    Speaking of some of the bright spots that have come up along the way, the Governor mentioned India's merchandise exports. “Despite the worsening global supply shocks slowing the recovery in the world economy, India’s merchandise exports grew robustly in 2021-22 overshooting the target of $400 billion,” he said.

    On services, he highlighted that the sustained and robust growth in the services exports and inbound remittances continued to keep our invisible account in large surplus which helped to partly straighten out the merchandise trade deficit.
    SIDBI MSME Conclave 2024 |Register Now.
    ...more
    The Economic Times

    Stories you might be interested in