RBI: More evidence is now available to show that the Indian economy is “pulling out of the deep abyss of COVID-19 and reflecting” at a rate that beats most forecasts, officials including Deputy Governor Michael Patra, said in an article in the monthly bulletin of the central bank.
In the article entitled “State of the Economy,” the financial conditions expressed in interest rates are perhaps at their easiest in decades, adding that, amid headwinds, efforts by all stakeholders could place India on a faster growth track.
They warned, however, that considering the severe impact of COVID-19 on government finances, it was imperative that the Centre and States continue to enact countercyclical fiscal steps to maintain the recovery momentum.
Capital expenditure that plummeted in the first half of this fiscal year would need to be prioritized. The need for time to create a more resilient and inclusive economy is public investment in health care, affordable housing, education, and the environment,” RBI stressed.”
The article noted that the opinions expressed were those of the authors and that the views of the central bank were not necessarily reflected.
The article said India was bending the COVID infection curve, stating that two significant forces, better management of the pandemic and stimulus effect, were “conspiring to bless this turning of the page on the virus.” Infections have been getting down week after week after September 15th, barring localized spikes, and the rate of recovery was nudging 95 percent, they said.
In addition, not only trial status but also suitability for transport/trials/usage in India has been successfully achieved by a battery of vaccine candidates.