Economic revival beating predictions: RBI bulletin
“Economic conditions continued to improve through November on the back of the uptick in agriculture and manufacturing,” RBI officials say in an article in the central bank’s monthly bulletin.
There is now more evidence to show that the Indian economy “is pulling out of COVID-19’s deep abyss and is reflating” at a pace that beats most predictions, RBI officials, including Deputy Governor Michael Patra, said in an article in the central bank’s monthly bulletin.
“Economic conditions continued to improve through November on the back of the uptick in agriculture and manufacturing. Financial conditions embodied in interest rates are perhaps at their easiest in decades,” said the article titled “State of the Economy”, adding that despite headwinds, efforts by all stakeholders could put India on a faster growth track.
However, they warned that notwithstanding the severe impact of COVID-19 on government finances, it was imperative for the Centre and States to continue with the countercyclical fiscal measures to sustain the momentum of the recovery. At a time when States have reduced spending on infrastructure and other projects, it said.
“Revenue expenditure measures undertaken to enhance social protections to the underprivileged and to address labour market dislocations might need to continue as the recovery is likely to be uneven across sectors.”
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The Hindu, 24 December, 2020, https://www.thehindu.com/business/Economy/economic-revival-beating-predictions-rbi-bulletin/article33413340.ece?homepage=true