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The risks RBI highlighted includes :
1. Oil prices.
2. The uncertainty over the effect of the minimum support price (MSP) hike.
3. The revenue impact of the lower-than-expected GST collections and the cut in excise duty on fuel.
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These risks could pose a challenge to the government’s commitment to meeting the Fiscal Responsibility and Budget Management targets.
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The key downside risks to growth are:1. High international commodity prices-especially of crude oil (There are still significant uncertainties).2. Spillovers from tightening global financial conditions.3. Geo-political tensions.4. Trade wars.5. Financial turbulence.6. The overhang of impairment in domestic banking and corporate balance sheets.
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The central bank added that the decline in the gross saving rate, mainly due to the decline in household gross financial savings, is another cause for concern.
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Regarding inflation, the RBI said that the outlook calls for a “close vigil” over the next few months as several upside risks persist.
Source
The Hindu.