MUMBAI: A host of incoming high frequency indicators are looking upbeat and consumer confidence is gradually returning, according to the State of the Economy Report published by the Reserve Bank of India (RBI). The report is authored by the central bank’s staff and published in its monthly bulletin.
According to the report, aggregate demand conditions point to sustained recovery, albeit, with some signs of sequential moderation. “On the supply front, farm sector situation remains strong with impressive progress of Rabi sowing, while the manufacturing and services record strong improvement on strengthening demand conditions and surge in new business,” the report said.
“The Indian economy continues to forge ahead, emerging out of shackles of pandemic,” stated the article authored by RBI officials. It added that a confluence of factors — release of pent-up demand, government’s push for capital expenditure, robust external demand and normal monsoon — are driving the revival. It also reiterated concerns raised by the governor over the global economy remaining hostage to heightened uncertainty, with Omicron sparking fresh containment measures.
