Important as it is to keep alert to new or emerging risks, as these two are, at the same time we need to maintain our constant watch around market, credit, liquidity, or operational risks that will inevitably raise their head in the years ahead. For the Reserve Bank, oversight of climate and cyber risks needs to be an ’and’, not an ’or’.
An assessment of India's innate strengths can be gauged from a comparison of the state of the economy today after three years of multiple shocks, with the situation during the taper tantrum in 2013 when India was labelled as among the fragile five. India's current account deficit had widened to 4.8 per cent of GDP in 2012-13, clearly above the sustainable level.