2016 world economic outlook, has projected global growth at 3. 4 per cent in 2016, marginally going up to 3. 6 per cent in 2017, helped largely by emdes, projected to grow at 4. 3 per cent and 4. 7 per cent respectively. fears of a 2008 like crisis may still be a long way off unless things get a lot worse in china. being an optimist, i would, be hesitant in using the word ‘ turmoil ’ to describe the current global economic situation. there are certain concerns though. the risk of a deflationary spiral looks more immediate and has the potential to cause damage. with some sovereign and corporate balance sheets sitting highly leveraged, a deflationary period and the increase in the real value of debt could weaken the debt repayment capacity of many economies and corporations. persistent low interest rates, which cast a shadow on the capabilities of central banks to stimulate growth and stability, make the outlook on global financial markets highly uncertain. critical issues relating to global geo - political developments and idiosyncratic socio - political challenges being faced by many advanced economies would have a spill - over impact on the economic outlook and have to be kept in view. of course, this would require separate discussions. impact on india 9. let me now briefly discuss about india ’ s positioning vis - a - vis its peers in the emde space at the current juncture. while i share with you some facts and figures which are quite impressive, i would also flag certain issues which, if not addressed properly, could be a drag on the economy. india has been variously hailed as “ beacon of stability ”, “ haven of stability ” and “ bright spot ” amidst a slowing global economy ”. this flows from the fact that india is the best performing large economy ( gdp close to us $ two trillion ) with a 7. 6 per cent estimated growth rate for fy16. both imf and the world bank in their january 2016 outlook project india to grow at the highest rate among major economies in 2016 and 2017. notwithstanding the volatility seen in some of the vital data points ( e. g., falling exports, low iip numbers, etc. ) the growth trajectory remains on track. importantly, such growth has been accompanied by macro - economic stability. inflation has been under control and the balance of payment position looks healthy. current account deficit ( cad ) has narrowed to 1. 4 per cent of gdp ( q2, fy16 ) from

central banking career, tommaso gradually developed a general paradigm of what he believed central banking involves. this paradigm is drawn from the evolution of modern central banks over the last 200 years. as the role of money – as a means of payment, a unit of account and a store of value – evolved over time, also what he called the triadic function of central banking evolved. in his view, ensuring price stability refers to money as a unit of account and a store of value ; operating and supervising the payment system refers to money as a means of payment ; and pursuing the stability of banks refers to money as a means of payment and a store of value. i would add that price stability is the primary goal, the primary mandate and that ensuring price stability is also a precondition for the other functions to be correctly exerted. tommaso ’ s paradigm still provides a single and consistent order, in which the responsibilities of a central bank have their place. to each of these activities – from monetary policy to banknote printing, to market operations, financial stability, payment systems, relations with other public institutions, dialogue with the financial community and international cooperation – tommaso has been assigned at different stages of his professional life. bis central bankers ’ speeches in all these activities the central bank pursues and represents the public interest of a sound and credible currency, one that preserves its value over time. and it is with great pride that i say today, in particular thanks to tommaso ’ s contribution, together with all members of the executive board, of the governing council and the staff of the ecb, that our primary mandate has been fulfilled : with an average inflation rate in the euro area over the past 12 years of 1. 97 %, the ecb governing council has delivered what 330 million europeans expect – “ la difesa del risparmio ”, “ die wahrung zu sichern ”, “ assurer la stabilite des prix ”. this remarkable track record has been delivered by a team of, today, 18 central banks ( the ecb, as captain of the team, and the national central banks of the 17 euro area countries ), which we call the eurosystem. from the very beginning, tommaso saw the challenge of making the full body of the eurosystem an effective, continent - wide central bank, to make all its components act together, as i call it, as a true team, with a strong and dedicated