RBI in its bulletin released today said barring another wave of Covid-19 infections, India's economy's worst is over and it ensures more room for recovery by policymakers.
In an article and as per a report in NDTV, RBI said, "Recent shifts in the macroeconomic landscape have brightened the outlook, with GDP in striking distance of attaining positive territory and inflation easing closer to the target."
In a response to check the shockwaves coming from Covid-19, RBI slashed the interest rates, last year. The rates are left unchanged this year in a bid to check inflation.
India is Asia's third largest economy and RBI expects it may contract by 7.5 percent in the current fiscal to March. As per analysis, Indian economy is likely to skip the recession phase. RBI said, the growth will be mostly consumption driven.
For sustainable growth and durable turnaround, the investment is necessary. As per RBI, the stress on financial sector balance sheets could rise. RBI observed "vigorous resumption" of spending by the government to drive growth that is shaken due to the pandemic.