Menu
BW CFO World
Community for Finance Professionals, Consultants and allied businesses
  • Home
  • News
  • Videos
  • Articles
    • Credit & Capital
    • Economic Trends
    • Financial Compliance
    • Financial Leadership
    • Financial Management
    • Financial Reporting
    • Financial Strategy
    • Risk Management
    • Taxation
  • Featured
  • Nominate for Awards
Close Menu
Rbi cfo
September 18, 2021

Prospects Getting Better For The Economy As The Second Wave Wanes: RBI

Online bureau Economic Trends

Prospects are brightening for the economy as the economy has escaped from the dangers of the second wave of the pandemic

Prospects are brightening for the Indian economy achieving “escape velocity” from the pandemic as the second wave of COVID-19 wanes and preparedness for future remains on war-alert status, according to an RBI bulletin published on Thursday.

An article on the state of the economy, published in the September bulletin, said aggregate demand is gaining firmer ground, while on the supply side, IIP and core industries mirror improvement in industrial activity and services sector indicators point towards sustained recovery. “In August, we believe that India passed a turning point which consolidates and thrives come September,” said the article authored by a team lead by RBI Deputy Governor Michael Debabrata Patra. It further said the trajectory of inflation is shifting down more favourably than anticipated.

“As pandemic scars heal and supply conditions are restored with productivity gains, a sustained easing of core inflation can be expected, which will reinforce the growth-supportive stance of monetary policy,” it said. The central bank, however, said the opinions expressed in the article are those of the authors and do not necessarily represent the views of the Reserve Bank of India (RBI). The article further said domestic economic conditions rounded a turning point in August as growth impulses gathered momentum with the progressive opening up of the economy and scaling up of the vaccination drive.

“Prospects are brightening for the economy achieving escape velocity from the pandemic as the second wave wanes and preparedness for future remains on war-alert status,” it said.

On aggregate demand, it said e-way bills remained above pre-pandemic levels of February 2020, signalling higher GST collections going forward. Besides, retail sales of motor vehicles registered growth over a low base in August last year; railways freight continued to be impressive; and fast-moving consumer goods sector surged, among others. Also, merchandise exports continued with their stellar performance. “In the August issue, we wrote about the music of autumn drowning out the songs of spring. We did so because we believe that at the current juncture, the Indian economy is evenly poised for that gravitational slingshot that will launch it on its aspirational growth trajectory.

“As the enervating effects of the pandemic recede, giving way to dormant growth impulses, the choice of strategy becomes critical,” the authors said. Talking about the price situation, the article said the trajectory of inflation is shifting down more favourably than anticipated. The inflation outcome for August has vindicated the RBI Governor-headed six-member Monetary Policy Committee’s call for treating the May price shock as transitory and looking through it, it said.

The softening of prices of various food items is likely to extend into third quarter of the fiscal and contain the upside price pressures stemming from fuel and core prices on headline inflation. The task now is to consolidate these gains and carry them forward into Q4 as well. India is a price taker in respect of fuel prices, which have been broadly aligned over time with international prices, it pointed out. It further said the outlook for core inflation is tied to the fortunes of the Indian economy going forward.

(PTI)

Avatar

Online bureau

→ Online bureau

World Bank Ended Publication Of ‘Doing Business’ After A Probe On Data Irregularities Deputy Governor Patra: RBI Will Continue To Stay In Liquidity Absorption Mode

Related Posts

SBI General Insurance CFO

Economic Trends, Financial Leadership, Financial Reporting

CFO Plays Multiple Roles Beyond Finance Sector: CFO, SBI General Insurance

rupee

Economic Trends, Financial Reporting

Rupee Posts 8 Paise Up To 81.60 Against USD Led By Foreign Capital Inflows

economy

Economic Trends, Financial Reporting, Global News

Global Economy May Slowdown More In 2023, According To Big Banks

Selected Stories

  • MayankSynergizing finance, strategy and management: The multipronged role of today’s CFO

    Read more

  • NECNEC Corporation elevates India CFO Mayank Khandelwal to Head of Finance for Global Regional Headquarters and Country Affiliates

    Read more

  • Screenshot 2023-04-18 190754Ramesh Bafna Appointed As The New CFO Of Zepto; Succeeding Jitendra Nagpal

    Read more

  • Screenshot 2023-03-28 180755Infobip appoints Richard Kraska as Chief Financial Officer

    Read more

  • 1494568857_NoPMEQ_CFO-470CFO – From ‘Finance’ To ‘Futuristic’

    Read more

Movements

  • Screenshot 2023-03-28 180755Infobip appoints Richard Kraska as Chief Financial Officer
  • zUah2lDb_400x400Deloitte India Named Romal Shetty As CEO For Four-Year Term
  • cfo imageVishnuhari Pareek Named As Head Of Finance At Arkam Ventures
  • thumbnail_Sidharth1Siddharth Sehgal Is New CFO Of BeatO
  • Business men giving a handshake. Business conceptRamamurthy Becomes MD, CEO of BSE, SEBI approves appointment

Categories

  • Accounting
  • CFO Stance
  • Credit & Capital
  • Economic Trends
  • Featured
  • Financial Compliance
  • Financial Leadership
  • Financial Management
  • Financial Reporting
  • Financial Strategy
  • Financial Technologies
  • Global News
  • Interview
  • Movements
  • Risk Management
  • Taxation

Recent Comments

    Back To Top
    BW CFO World
    • Home
    • News
    • Videos
    • Articles
      • Credit & Capital
      • Economic Trends
      • Financial Compliance
      • Financial Leadership
      • Financial Management
      • Financial Reporting
      • Financial Strategy
      • Risk Management
      • Taxation
    • Featured
    • Nominate for Awards
    © Copyright BW BUSINESSWORLD 2018. All Rights Reserved.