RBI’s Report On Currency And Finance:
According to recent Reserve Bank of India’s (RBI) Report on Currency and Finance (RCF), the Indian economy may take more than a decade to overcome the losses caused by the outbreak of Covid-19 pandemic.
- The theme of the report is “Revive and Reconstruct” in the context of nurturing a durable recovery post-Covid-19 and rising trend growth in the medium-term.
- Covid-19, Worst Health Crises: The Covid-19 pandemic will go down in history as one of the worst health crises the world has ever faced.
- The pre-Covid trend growth rate works out to 6.6% and excluding the slowdown years it works out to 7.1%.
- Taking actual growth rate of (-) 6.6% for 2020-21, 8.9% for 2021-22 and assuming growth rate of 7.2% for 2022-23 and 7.5% beyond that, India is expected to overcome Covid-19 losses in 2034-35.
- Its economic impact may linger for many more years and confront Indian Economy with the challenges of rebuilding livelihoods, safeguarding businesses and reviving the economy.
- India suffered among the biggest pandemic induced losses in the world in terms of output, lives and livelihoods, which may take years to recover.
- The Russia-Ukraine conflict has also dampened the momentum of recovery, with its impact transmitting through record high commodity prices, weaker global growth outlook and tighter global financial conditions.
- Concerns surrounding deglobalisation impacting future trade, capital flows and supply chains have amplified uncertainties for the business environment.