The RBI stated that though India has not moderated to the level that it did during the first wave, uncertainty can operate as a disincentive in the medium run. Prime Minister Narendra Modi stated on Wednesday that covid-19 has a massive economic impact and that the world would never be the same when the epidemic is over.
“Many people have been affected by this once-in-a-lifetime epidemic. Every country has been hit by an epidemic. There is also a significant economic consequence. After Covid-19, our world will be different. “We will undoubtedly remember events as either pre-covid or post-covid in the future,” Modi stated during his keynote presentation at the Vesak Day program to commemorate Buddha Jayanti.
The economy’s recovery from the Covid-19 will be crucially dependent on a robust restoration of private demand, the central bank wrote in its annual report, which may be driven by consumption in the immediate run but will require acceleration of investment to maintain the recovery.
In its annual report for 2020-2021, the central bank also claimed that the previous year had left an economic scar, and that “as 2021-22 begins, pervasive despondency is being removed by optimism built up by vaccination drives.
It also stated that monetary policy in 2021-22 will be guided by changing macroeconomic conditions, with a bias toward being supportive of growth until it acquires pace on a long-term basis while keeping inflation under control.
The global economy, which was hit hard by the coronavirus epidemic in 2020, is showing signs of recovery in 2021. The majority of established economies and several developing economies are recovering quickly, while the rest of the globe, including India, is behind.
Most professional forecasters have dropped their growth forecasts for FY22 to below 10%, with JP Morgan and Barclays lowering theirs to 9% and 9.2%, respectively