In a stark revelation at the Global 59th SEACEN Governors' Conference, RBI Governor Shaktikanta Das emphasised the urgency of balancing green capital distribution worldwide. He advocates for collaborative efforts to address climate change and stresses the need for fair and equitable global arrangement
Reserve Bank of India (RBI) Governor Shaktikanta Das has highlighted the uneven flow of green capital worldwide. He said that financing for green projects is "skewed" and concentrated in advanced economies, and capital flows to emerging market economies (EMEs) must be bolstered urgently.
Collaboration is needed to tackle climate change because countries cannot make effective strategies, he said at the Global 59th SEACEN Governors' Conference in Mumbai.
He reiterated the importance of factoring in the potential financial stability implications of the green transition and chalking out an effective global cooperation and coordination strategy to deal with the multiple challenges afflicting the global economy. Multilateralism must be re-energised. In this regard, agreements on a critical mineral corridor and a food corridor for safeguarding food security are necessary. Such arrangements have to be fair and equitable."
Das said the RBI was vigilant in navigating the final stretch of disinflation, calling it the most challenging segment of the journey. He said the RBI acknowledged that maintaining stable and low inflation was essential to establishing a solid foundation for sustainable economic growth.
"Inflation has moderated from the highs of the summer of 2022. However, "recurring food price shocks and renewed flashpoints on the geo-political front pose challenges to the ongoing disinflation process," he said.
In January, the consumer price index (CPI)-based inflation rate dipped to a three-month low, at 5.1 percent, compared to 5.69 percent in December.
He further said improving infrastructure was paramount for long-term growth. While investing in roads, ports, airports, electricity, and water is crucial, equal emphasis must be placed on developing soft infrastructure like education, health care, and legal, financial, and institutional frameworks. Skill development and increasing female labour force participation are essential for improving efficiency and unlocking any region's growth potential.