RBI in its bulletin released today said barring anotherwave of Covid-19 infections, India's economy's worst is over and it ensuresmore room for recovery by policymakers.
In an article and as per a report in NDTV, RBI said, "Recentshifts in the macroeconomic landscape have brightened the outlook, with GDP instriking distance of attaining positive territory and inflation easing closerto the target."
In a response to check the shockwaves coming fromCovid-19, RBI slashed the interest rates, last year. The rates are leftunchanged this year in a bid to check inflation.
India is Asia's third largest economy and RBI expects itmay 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 willbe mostly consumption driven.
For sustainable growth and durable turnaround, theinvestment is necessary. As per RBI, the stress on financial sector balancesheets could rise. RBI observed "vigorous resumption" of spending bythe government to drive growth that is shaken due to the pandemic.