Indian economy remains resilient despite global headwinds: RBI

New Delhi, July 18: The Indian economy remains resilient despite formidable global headwinds and amidst fears of a recession, the Reserve Bank of India said in its latest monthly bulletin.

In spite of geopolitical spillovers, “There are sparks in the wind that ignite the innate strength of the economy and set it on course to becoming the fastest growing economy in the world, though besieged it might be by fears of recession,” the bulletin said.

The Indian economy is showing resilience and dynamism in spite of the geopolitical situation and high-risk aversion in financial markets that is stampeding portfolio investors and taking down all currencies against the unrelenting strength of the US dollar, it said

Further, the recent revival of the southwest monsoon and rejuvenation of sowing activity has raised hopes of another bountiful year for agricultural activity, raising expectations that rural demand will soon catch up with urban spending and consolidate the recovery, it added.

Domestic inflation coming off its recent peak is also a source of relief.