April 18, 2022
Increased vaccination coverage and the resumption of economic activity have bolstered economic recovery.
The amplification of private sector investments can help usher in sustained economic growth.
The Monetary Policy Committee has revised the Real GDP estimate from 7.8% to 7.2% for the 2022-23 period.
Increased capex spending, better export performance, and remittance collection can place the Indian economy in good stead.
The April bulletin published by the Reserve Bank of India charted out the steps required to sustain the growth momentum in the economy while securing itself against external threats. The experts contributing to the bulletin maintained that most sectors have exhibited recovery and even exceeded pre-pandemic levels of growth on the resumption of economic activity. With the pace of vaccination and the lifting of COVID restrictions, experts observed that increased private investment was the prerequisite for sustained economic growth.
The ongoing Russo-Ukrainian war has had repercussions on global economies including the Indian economy some of which include broad-based inflationary risks and fluctuations in the pricing of crude oil. The Monetary Policy Committee has revised the Real GDP growth projection of 7.8% for 2022-23 to 7.2%. Inflation is projected to be at 5.7% in the current fiscal year. The experts maintained that developing economies care vulnerable to discrepancies arising from global financial conditions, surging imports, and vagaries of climate. In their view, the Indian economy can overcome the impact of the war through increased capex spending on infrastructure, expanding vaccination coverage, strengthening the financial sector, improving export performance and remittance collection.