On Wednesday, February 16, the Reserve Bank of India (RBI) released the February 2022 issue of its monthly Bulletin. The Bulletin includes Monetary Policy Statement, February 10, 2022; one speech; four articles; and current statistics.
The Reserve Bank of India (RBI) said the country’s economic situation was heading in the wrong direction for global development and economic recovery as the country emerged from the third phase of the epidemic.
In its February report, the central bank said manufacturing and services continued to grow in the needs and needs of consumers and businesses.
The four articles are
I. State of the Economy
II. Zombies and the Process of Creative Destruction
III. Bad Banks as Good Samaritans: Lessons from Cross-Country Experience for India
IV. Impact of COVID-19 on Sentiments of Indian Manufacturers.
“As businesses return to normal, working conditions are expected to improve,” said a report released by the Department of Economic Research and RBI Policy.
“In India, economic growth is growing exponentially with gravity as it emerges in the third wave. Both manufacturing and services continue to grow well across all levels of demand and to increase consumer and business confidence, “said the central bank.
He said that better planning and strategies, Supply chain Logistics management, and digital acceleration have helped firms reduce the risk of an epidemic during the third wave. Further, he added, unlike the first two waves, consumer confidence and business remain strong after faster vaccinations, better global economic prospects, revenue—domestic, and expenses.
“By February 2022, travel indicators have reached pre-epidemic levels as unemployment declines. As businesses return to normalcy, employment has intensified – several Indian firms, global giants, and startups announced major hiring programs in India,” the report said.
In addition, rapid revenue collection under the goods and services (GST) tax, solid toll collection, and e-way debt production all show continuous improvement.
The report said that India’s real estate sales registered a robust annual growth rate of 23.7 percent (y-o-y) at $ 34.1 billion in January 2022. In the agricultural sector, he said the amount of acreage under rabies had touched a new record of 700.8 lakh hectares, 1.5 percent over last year’s hectare and 8.2 percent above average (five years), since February 4.
The profits of 1,273 listed non-financial companies, representing 80 percent of the market capitalization of all listed non-financial companies, show growth of y-oy sales by two digits in the third quarter of 2021-22, the RBI said.
The state of the world’s largest economy is still focused on rising volatility, and risk is low. As inflation grows around the globe and significant banks rush to tighten monetary policy, investors’ sentiments are diminished by the refusal to risk, which could disrupt inflation and prevent further fetal growth, the report said.
However, as inflation is expected to remain within India’s 2022-23 tolerance belt, the RBI’s Monetary Policy Committee (MPC) decided to suspend and tolerate the settlement policy position. RBI Governor Shaktikanta Das stressed that monetary policy would continue to achieve price stability while ensuring solid and sustainable economic stability.
“The Union’s 2022-23 budget and fiscal policy statement for February 10, 2022, laid the foundation for a long-term and comprehensive restructuring process. The renewed emphasis on public investment in infrastructure development is expected to regulate private investment and strengthen employment opportunities. It increases the creation and demand by 2022-23, “the report said.
He said Gati Shakti’s master plan, which aims to achieve inclusive growth through multi-pronged communication and efficiency, is essential to strengthening infrastructure.
“High spending and business facilitation have illuminated the vision. According to the IMF, India has once again emerged as a fast-growing economy among the world’s major economies,” the report concluded.
Edited by- Subbuthai Padma
Published by- Radhika N
