Prime Minister Narendra Modi today said the nation's macro fundamentals are strong and asserted that his government is firmly committed to the path of fiscal consolidation.
The USD 2.6-trillion domestic economy, which may see 7.4 per cent GDP growth this fiscal year, has emerged as a "bright spot" in the global economy driving growth, he said.
"Despite rising oil prices, inflation is within the mandated range. The government is firmly committed to the path of fiscal consolidation," Modi said, addressing the third annual meeting of the multilateral lender Asian Infrastructure Investment Bank here at the iconic NCPA hall in south Mumbai.
The PM's remarks came in the backdrop of retail inflation accelerating to 4.87 per cent in May, above the mandated 4 per cent for the seventh successive month.
Government debt as a percentage of GDP has been consistently declining, Modi said, adding the Indian economy has received a rating upgrade after a long time.
"India's economic resurgence closely mirrors that of many other parts of Asia and has become the main growth engine of the world now," he said.
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"A 'New India' is rising. It is an India that stands on the pillars of economic opportunity for all, based on a knowledge economy, holistic development, is futuristic and resilient," Modi said.
With a USD 2.6 trillion GDP, India is the seventh largest economy in the world and the third largest in terms of purchasing power parity, he said.
In the fourth quarter of 2017, GDP grew at 7.7 per cent and is projected to grow at 7.4 per cent this fiscal year, Modi said.
Allaying fears of any external threats to the economy at the macro level, Modi said "the over USD 400 billion forex reserves give the country enough cushion to withstand any external shocks."
Announcing that the country will be hosting a global mobility conference this year, Modi said "we are working on e-mobility. The challenge before us is of technology, particularly with respect to storage."