Reserve Bank of India Governor Shaktikanta Das on Thursday advised the government to opt for more structural reforms to cushion the economy from rising global headwinds, the Hindustan Times reported.

However, Das said that despite rising external risks, the Indian economy was resilient as foreign debt was only 19.7% of the Gross Domestic Product, PTI reported. He also said that he expected the inflation rate to remain below 4% for the next 12 months. Government data published last week had shown that retail inflation rose to 3.1% in August, the highest in 10 months.

Das said that the rise in petrol and diesel prices due to the drone attack on Saudi Aramco’s oil facilities in Abqaiq will have only a limited impact on inflation. Das added that the United States Federal Reserve’s decision to cut interest rates will increase fund inflows into India, but said the public should be vigilant about the nature of such funds.

India’s economic growth rate has slipped a six-year low. Last month, it was reported that the economy grew only 5% in the April-June quarter. In the last few months, core sectors such as automobiles and manufacturing have witnessed a progressive slowdown due to weakened consumer demand and dearth of investments.

Earlier this month, Finance Minister Nirmala Sitharaman had announced a slew of measures to boost the economy.

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