Economy is picking up steam: RBI report
The momentum is on account of the strong performance of kharif agricultural production and revival of manufacturing
It is time for India to start on a new trajectory of sustainable and equitable growth, with the vaccination push building up steam and the Covid-19 mortality rate falling, according to the Reserve Bank of India (RBI). Domestic demand is strengthening, while aggregate supply circumstances are improving, the Times of India reported, quoting a paper written by a team of RBI officials led by Deputy Governor M D Patra. This is on account of the strong performance of kharif agricultural production and the revival of manufacturing and services.
The Indian economy is picking up momentum despite an increase in global threats, albeit the recovery is uneven and plodding through soft patches. The increase in immunisation, the drop in new cases and mortality rates, and the normalisation of mobility have all helped to restore confidence, the report noted.
It went on to say that lower-than-expected food costs had brought headline inflation closer to the Reserve Bank’s target.
Momentum is back
Observing that in order to reclaim the demographic dividend, India will require policies that harness energies, the newspaper report quoted article as saying. India’s strong fundamentals, receding chances of a negative loop between the actual economy and the financial sector, substantial capital cushions, and abundant liquidity have all been cited in recent outlook upgrades, the report noted.
The time has come to put India on a new path of inclusive and sustainable growth. After all, October is a symphony of permanence and change, a symphony of endings and beginnings, the report said.
It stated that the opinions mentioned in the paper are those of the writers and do not necessarily reflect the Reserve Bank of India’s position.
The article also argued that longer policy support is needed for a sustained and inclusive recovery, stating that the policy mix must be carefully considered and sensitively chosen “as it is expected that employment will weigh on the recovery, with people losing incomes and jobs, and those who do have jobs losing purchasing power.”
It went on to say that job prospects are improving in the run-up to the festivals, with entry-level hiring expanding at the quickest rate.
In terms of hiring intentions, the IT sector leads, followed by education services, healthcare, and pharmaceuticals.