India's macro-fundamentals strengthened even though it faced severe external shocks since 2020, Reserve Bank Monetary Policy Committee (MPC) member Ashima Goyal said on Monday. The country's economic diversity, adequate buffers, and feasible reforms have enabled policies to be countercyclical, she told PTI in an interview. With more and more firms and consumers internalising the inflation target, the economy is likely to approach the Reserve Bank of India's (RBI's) inflation target of 4 per cent this year. "There have been severe external shocks (Russia-Ukraine war, Israel-Hamas war, oil prices, Houthi attacks) since 2020. But despite these, Indian macro-fundamentals have strengthened in this period," she said. The economist said the rupee has been relatively stable due to these factors. "Economic diversity, adequate buffers, and feasible reforms... have enabled policies to be countercyclical. We have the capability to implement countercyclical policy and smooth external shocks,"