The RBI has said that while economic growth has gained traction, its pace has been uneven
While the global economic scenario looks uncertain, on the domestic front, the economic recovery has been strong despite the uneven pace of improvement.
This is the Reserve Bank of India (RBI) analysis of the current state of the economy, released by the bank in its monthly newsletter for November 2021.
In its chapter on the state of the economy, the central bank noted in the news that “the aggregate demand indicators show a brighter near-term outlook than before. On the supply side, Rabi season has started early with a positive record thanks to record harvest in Kharif and production activity is showing improvement in general operating conditions, while services are in a mode of recovery. strong expansion”.
Overall, monetary and credit conditions remain favorable for the long-term economic recovery to begin with, it added.
At the same time, it highlights how the pandemic has resulted in major disruptions in the global economy as well as in the domestic economy causing instability, reflected in the large change in growth and inflation forecasts for the country. the fiscal year has passed, i.e. 2020-21.
The pandemic-induced shutdown has resulted in a significant downward revision in the growth forecast for 2020-21, and the subsequent reopening of the economy has resulted in an improved growth outlook.
