Furthermore, comfort can be drawn from the fact that the Indian economy has demonstrated considerable resilience to exogenous shocks in recent years. The optimism reflected in business confidence surveys at the time of Mid-Term Policy Review seems to have been further enhanced and the credit rating agencies have taken positive note of recent developments.
The inflation outlook by and large remains benign, though careful monitoring and management would have to continue with a view to cushion supply shocks and better manage supply bottlenecks for individual commodities so that price volatilities are  BIS Review 3/2004  3  evened out. The money, government securities and forex markets remain stable.