Improving liquidity helping robust growth in credit: RBI

MUMBAI: Liquidity conditions have improved further, supporting robust credit growth even as India’s external sector remains steady with an improving outlook aided by foreign investment inflows, RBI said in its latest State of the Economy report, noting that the domestic economy has navigated a “tumultuous phase” in global markets marked by fragile geopolitics and supply chain pressures.The central bank said that the global economy is continuing with the heightened uncertainties, but added that on the domestic front India has “navigated the external uncertainties well, underpinned by healthy demand conditions and resilient performance of the industrial and services sector”.On the agriculture front, RBI flagged that there has been delayed kharif sowing due to the uneven progress in southwest monsoon amid prevailing El Niño conditions, while noting that high public foodgrain stocks should provide some cushion against price pressures.The report added that “India’s key external sector vulnerability indicators remained well-anchored as at…