Economy on durable path of recovery, says RBI article

The Indian economy is on the path of a durable recovery on the back of conducive monetary and credit conditions, the global headwinds notwithstanding, said a Reserve Bank of India (RBI) article on the state of the economy.

MUMBAI:

Domestically, there have been several positives on the COVID-19 front, in terms of reduced infections and faster vaccinations, the article published in the RBI Bulletin November 2021 added.

The Indian economy, the article said, is clearly differentiating itself from the global situation, which is marred by supply disruptions, stubborn inflation and surges of infections in various parts of the world.

Notwithstanding the global headwinds, the article said mobility is rapidly improving, the job market is recouping, and overall economic activity is on the cusp of a strengthening revival.

“Overall monetary and credit conditions stay conducive for a durable economic recovery to take root,” it noted.

The global economic outlook remains clouded by uncertainty with headwinds from multiple fronts at a time when many economies are still struggling with nascent recoveries.

There is a risk of faster policy normalisation by major central banks leading to tightening of financial conditions and stifling of growth impulses, the article said.

The central bank said views expressed in this article are those of the authors and do not necessarily represent the views of the Reserve Bank of India.