Risks to Indian Economic Stability Have Risen, Reserve Bank Says

Slower Indian expansion and threats from trade and budget deficits have increased the economic risks the nation faces, its central bank said.

“Relatively high” inflation, lower savings and moderating investment and consumption have boosted risks, the Reserve Bank of India said in its biannual Financial Stability Report today. It flagged a “high” current-account gap, “stressed” fiscal position and rising corporate leverage and falling profitability.