With supportive policies, greener technologies can yield economic and environmental 2/5  BIS central bankers' speeches  benefits. 13. Fifth, India’s energy sector is also witnessing significant churning and technological transformation. As India grows rapidly, its energy demand is expected to pick up in the near future. Currently, a large part of the energy demand is met from fossil fuels, with significant import dependence.
The final uncertainty is around energy and other supply shocks that could boost inflation and lower growth. The situation in Europe remains very uncertain. While gas prices have declined lately, they are expected to rise again, particularly if there is an unusually cold winter or Russia’s war on Ukraine escalates further.