© . FILE PHOTO – A worker sits on a container ship at Mundra Port in the western Indian state of Gujarat, April 1, 2014. REUTERS/Amit Dave MUMBAI () – India’s growth story remains as weak as it was during ‘taper tantrum 2013’ and geopolitical tensions in Ukraine and Russia are likely to further hurt a recovery, Reserve Bank of India deputy governor Michael Patra said Friday. “In a way, India’s growth story remains as weak as it was at the time of the 2013 taper tantrum. The recent reverberations of war have actually tipped the risk balance downwards,” Patra said at an event hosted by the IMC Chamber. of Trade and Industry. Patra said that while the third wave of the pandemic had a relatively minor impact, as reflected in high-frequency indicators, gross domestic product for the full year 2021/22 is expected to increase by just 1.8% from pre-pandemic level. Government pressure on capital spending in 2022/23 could be the game changer by increasing manufacturing capacity, crowding out private investment and bolstering aggregate demand amid the favorable financial conditions brought on by the RBI, the deputy governor said. Patra said there are upside risks to inflation projections made by the RBI’s monetary policy committee based on recent geopolitical developments, and the MPC will provide a thorough reassessment at its April meeting. “But the focus of monetary policy on price stability with clear accountability and the government’s proactive responses to keep prices under control give confidence that India will weather this storm,” he added. There is scope for the government to further cut fuel taxes and that could help slow the pass-through of high crudes to pump up prices, Patra said. “While the implications of the geopolitical situation are being assessed and will be factored into our projections, it is reasonable to treat it as a supply shock at this stage of monetary policy,” he added. Since the start of the pandemic, India has experienced periods of soaring inflation, but the total number has remained in single digits and tends to return to target as each supply shock has abated, Patra said. “Global spillovers continue to impact core inflation and keep it high,” he added. Disclaimer: Fusion Media would like to remind you that the data on this website is not necessarily real-time or accurate. All CFDs (Stocks, Indices, Futures) and Forex prices are not provided by exchanges but rather by market makers, and therefore prices may not be accurate and may differ from the actual market price meaning prices are indicative and not suitable for trading purposes . Therefore, Fusion Media does not bear any responsibility for any trading losses that you may incur as a result of using this data. Fusion Media or anyone associated with Fusion Media accepts no liability for any loss or damage resulting from reliance on any information, including data, quotes, charts and buy/sell signals on this website. Be fully informed about the risks and costs associated with trading the financial markets, it is one of the riskiest forms of investment possible.