Corona's cases Rising economic outlook uncertain

 

Mentioned in the report of the Reserve Bank of India on the state of the economy
Every factor of demand is dynamic but still the absence of private investment

The country's economic activity is picking up speed but the outlook is surrounded by significant uncertainty due to a resurgence of coronavirus cases, according to a report on the state of the economy by the Reserve Bank of India.

The country's outlook is surrounded by considerable uncertainty. However, the report notes that the strength in the recovery and the increase in its coverage have kept the hopes alive.

Every factor of aggregate demand has gained momentum only private investment is still absent. The current time is favorable for private investment.

Currently, a number of measures have been taken to increase liquidity in the financial system. After being negative for two consecutive quarters, the country's economic growth rate has been positive in the third quarter of the current financial year. Preliminary estimates for the 2020-21 season in the country indicate a record production of 30.30 crores.

All kinds of trades have opened up and consumers are coming out to shop. The Indian economy has taken a turn, the report said. Inflation has soared due to renewed enthusiasm. However, given the 6% increase in pulses production compared to last year, food inflation will soften but measures are needed to reduce base inflation.

High excise duty on petro products is a matter of concern but an increase in other sources of revenue could ease the pressure. This could lead to lower petrol, diesel, and cooking gas prices, which could lead to lower inflation.